OREANDA-NEWS. December 29, 2009. Stanislav Svetlitskiy, Deputy Minister of Power of the Russian Federation since the time he was elected the member of the Board of Directors of JSC Irkutskenergo has been twice in Irkutsk. But he is very well acquainted with the activity of the power company itself. In the interview, he gave to Elena Lisovskaya in Moscow, he expressed his opinion on the transaction directed to the acquisition of “Vostsibugol” company. He said what changes in the electric power we shall wait after the recent accident at the Sayano-Shushenskaya HPP. He said that two personal stories are connected with the region. His great grandfather was the Governor of the Irkutsk Province.

- Is it possible to think that the power engineers went through the period of the electric power production slump? How do you assess the financial situation at the enterprises of the electric power? How typical is the state of business in JSC Irkutskenenrgo?

- I think that the issue concerning the electric power production is the secondary one in relation to the production of the final product of the enterprises the sector works for. Te slump of the amounts of production of the electric power was connected with the general decrease of the industrial production in Russia. As soon as the economy began to restore the load of at the electric power objects was increased. Now the financial state of the electric power enterprises is more stable than in the past year. It is connected with the fact that the companies seriously began to decrease the costs. And the state of business in JSC Irkutskenergo is quite typical: at the beginning we witnessed the decrease of the production and than the increase of the demand connected with the economic revival which we observed during the past several months. I think that the only difference of the regional economy of the company is the larger part of the electric power production at the hydro stations.

- According to the results of the I half year the growth of production at the Russian hydro electric stations decreased almost 10 % - this is one of the best indices for the recent years. How long can be the period of the growth of the hydro electric stations? What do you think about the change of the ratio of the electric power production at the hydro generation and the heating capacities?

- The growth of production at the hydropower stations is connected with two factors: productive work of the management directed to the decrease of the non-production-related costs and implementation of the timely repair works as well as with the increased water content. When the water level of Lake Baikal increases, the possibility of the electric power production at the cheaper hydroelectric power plants also grows. The growth of the load of the hydro capacities depends on the amount of water in Lake Baikal which can be worked out. I suppose that in the near future the ratio of the output at the hydro generation and heat capacities will not considerably change.

- What do you think how timely is the coal asset acquisition of JSC Irkutskenergo?

- This transaction is approved by the Board of Directors of the Company in October. We consider it quite timely and favorable for the power company. We can make the statement taking into account several months that the extraction at the coal sites of “Vostsibugol” company is 2.5 million tons of coal increased. It helped not only to preserve the workers, but to attract the additional specialists which is a characteristic feature of rare companies during year. For the company itself the acquisition of the coal assets determines the reasonable logistics and the productive coordination of the investment program of the power and coalminers, and for the region itself - the curbing of the growth tariffs. At present, JSC Irkutskenergo is able with minimum possible losses to go through any peaks of growth or decrease of the coal prices which were observed in 2007 and 2008. Besides that, the extraction can be carried out gradually, stage by stage during the year which will help to achieve the additional decrease of the net cost.

- How this transaction will influence the investment plans of the company?

- I think that taking into account the fact that KVSU (“Vostsibugol” company) is the profitable company which transaction will be covered very soon. Besides, the transaction will not be reflected in the reputation of JSC Irkutskenergo as the first rate borrower. If there is such a necessity the power company can attract the means.

- How do you assess the perspectives of the gas inclusion to the power balance of the Irkutsk region?

- Absolutely positively. The region that has among its assets the coal and gas capacities and the hydro-resources can unworriedly go through any changes and built up the clear economic policy. Its productivity will only increase due to this.

-How do you think the failure at the Sayano-Shushenskaya HPP influenced the growth of the load of heat generation in Siberia?

-At the end of August – beginning of September the Ministry of Power of the Russian Federation made up the forecast of the redistribution of the production of the power due to the accident at the Sayano-Shushenskaya HPP. But the real state of business was even better due to the good weather. In general the increase of the loads in the heat grids of the Western Siberia accounted for 5% and the consumption of the coal by these stations increased by 2 million tons. We do not assess these indices as critical: they are far from those that we saw in the pre-crisis times.

- What changes we are to wait in the normative and legal base regulating the activity in the electric power due to the recent events at the Sayano-Shushenskaya HPP?

- The failure at Sayano-Shushenskaya HPP will require the serious revision of the normative and legal base. The State Duma of the Russian Federation got the new project of the technical regulation concerning the hydro technical constructions. It was worked out taking in to consideration the events which took place in the Republic of Khakasia. Historically, we took great attention to the dam itself and its reliability, now it is proposed to make accent at the hydro aggregates, machine hall, gates and etc. We also work at the issues concerning the payments to the persons suffered from such failures.

- Which issues connected with the reliability of power companies shall be solved at the level of the government and which at the level of the regions?

- Together with the representatives of Rostekhnadzor (Federal Service for Supervision of Environment, Technology, and Nuclear Management) we are working out the complex program of the technical audit and the inventory of all the substations - heat and hydro ones. The goal of the program is to get the view of the company on the state of the stations, to ask the owners to provide the complete safety and the minimization of the failure risks. Rostekhnadzor constantly checks the condition of the stations, earlier they paid great attention to the condition of the dams and the hydro construtions, now they pay attention to the condition of the hydro aggregates and the presence of the reserve equipment which helps to provide the power to the territory in the force majeure situations.

How do you ensure the reliability of JSC Irkutskenergo?

- Right after the incident in Khakasia I was elected the Head of the HPP Restoration Quarters of the Ministry of Power. My first order to the management of JSC Irkutskenergo was that all the heads of hydro stations, chief engineers and their deputies attended the the Sayano-Shushenskaya HPP and looked at the situation with their own eyes. Because before August 17, 2009 many people think that such a failure was impossible in reality. We worked up the plan of the special activities for JSC Irkutskenenrgo which included the issues connected with the technological audit and retooling of HPP. These works have been carried out and will be further implemented.

What law changes connected to the electric power reforming will be initiated by the Ministry due to the accident at Sayano-Shushenskaya HPP?

We do not see the necessity to make changes to the laws connected with the reform itself. As I have already said we shall change the normative acts connected with safety, checkups regulation and etc. There is no connection to the tariff policy for the population as well. The rise in price in the power zone of Siberia due to the failure is possible, but it is a local thing. We will try to smooth it over.

What are your personal impressions of Irkutsk and the Region of Irkutsk? What connects you with the Irkutsk region apart from the work?

I’ve been to Irkutsk twice since I was elected the Chairman of the Board of Directors of JSC Irkutskenergo. The City left the dual impression in my mind. On the one side, I see how great the potential of the region is together with its resources, storage and developed industry. On the other side the development of the region is curbed by the absence of human resources. And I speak not about the management, but well qualified personnel in different spheres – the engineering and technical personnel. The industry shall be developed not with the help of managers, but with the help of those engineers and technicians which move the progress. I suggest that the complex plan of the Irkutsk region development is necessary. I suppose that the Governor thinks the same way.

Irkutsk is not the foreign city to me. My great grandfather Konstantin Nikolayevich Svetitlitskiy was the Governor of the Irkutsk Province. Here he found his wife, born in the family of a merchant. They bought the Governor house to him and there he lived. I saw it when I visited the city.

What would you like to wish to power engineers in their professional holiday and in honor of 55-th birthday of the Company?

I’d like to say that JSC Irkutskenergo was established long time ago, but it goes on its dynamic development. Many people who used to work in it occupy the leading posts in the Russian electric power sector. It tells a lot. On the professional holiday I’d like to wish the personnel, first of all to be healthy. If you have health you want to work, help people, give them heat and light and make the deed which is important for all of us. You should like your work to go to it happily every morning and at the end of the day come back home to your dearest and loved ones. I wish you all the best both in the family relations and at work.