OREANDA-NEWS. December 13, 2012. The main aim of “Siberian Generating Company” reorganization is enhancement of operational efficiency of each power industry facility and of SGC as a whole. SGC General Director Sergey Mironosetsky spoke about this when interviewed by the Nash Krasnoyarsky Krai Newspaper.

The reorganization has resulted in extraction of 16 new companies from JSC “Kuzbassenergo” and JSC “Yenisei TGC (TGC-13)” that will commence their core activities since January 1, 2013.

According to S. Mironosetsky, the reorganization pursues perfectly understandable and quite attainable aims: enhancement of operational efficiency and transparency of production units of the Group power industry enterprises. A second aspect is elimination of cross-subsidization between the plants. “This can be implemented only if one gives up the so-called “boiler tariff”, unified within the whole of the Company across the heat supply centres, such tariff level often failing to reflect the actual heat generation costs with a number of plant, the most efficient plants thus subsidizing the operation of less efficient ones within one and the same TGC. However, we want all our enterprises to become efficient,” says the Company CEO.

Additionally, electric and thermal energy generation and thermal energy transmission across heating networks are basically two different businesses requiring specific approaches and solutions. To separate them is yet another main aim of the reorganization.

“Notably, the reorganization will not affect the regional budgets: the Group enterprises will continue their operations regionally, paying taxes to regional budgets. However, for the consumers there will be changes, and for the better. It is heat transportation companies that act as service providers in our presence cities, a closer focus on the client to become one of their main aims,” emphasized Sergey Mironosetsky.

“Siberian Generating Company” (SGC) Group including JSC “Kuzbassenergo” (TGC-12) and JSC “Yenisei TGC (TGC-13)” is engaged in production and sales of electric and thermal energy, additionally providing for heat supply. The Group of Companies carries out its activities within the Kemerovo Region, the Altai and Krasnoyarsk Territories and the Republic of Khakassia. In the total generation volume of the Integrated Power System of Siberia SGC accounts for a portion amounting to approximately 20%. The main fuel is coal. The main end market is the Wholesale Electric Power Market. Currently, the Company is implementing a large-scale investment programme for construction of new facilities within the framework of power supply contracts, the programme cost exceeding 86.7 bln RUR.