Board of directors’ progress report

Development of telecommunications and IT systems

IDGC of Urals (OAO) is an advanced company operating in the energy sector, its efficiency hinging upon IT and automation tools. In the current context successful performance of the power grids (and Company itself) demands three integral elements to be available for use:

  • Automated systems dealing with technological process management (calculation of the cost of energy, payment control, planning of wholesale energy market purchases, monitoring of supply junctions, etc.);
  • Automated systems dealing with business administration (management of cash flows, calculation of salaries, preparation of accounting statements, etc.);
  • Telecommunication systems and IT infrastructure (enforcement of operability of all automated systems and non-stop communications for all Company’s workers).

IT services are extremely important for achieving such Company’s business targets as secured electricity transmission, enhanced quality of services and satisfaction orientation. Advanced process automation also assists in improving efficiency of power grid operations.

Implementation of new IT projects, development and maintenance of existing ones goes on an everyday basis in line with the Company’s strategy for IT and telecommunications. This strategy defines development objectives for Company’s IT, strategic initiatives and measures to achieve them, approved by the Company’s Board of Directors (21) (22), as well as the following IT principles:

Sphere Description
IT solutions
  • Continuous cooperation with in-house IT service consumers
  • Total intracorporate standardization of IT processes (incl. production-oriented units)
  • Development and implementation of standards regulating administration of project software and portfolio
  • Revaluation of importance and repositioning of IT service
IT set-up
  • Centralization of IT and implementation of efficient tools for intracorporate IT coordination;
  • Preparation of optimal intracorporate interaction model for joint IT solution implementation and exploitation;
  • Set-up of universal and flexible IT service model.
IT processes
  • Application of efficient solutions to oversee that IT processes for IT service provision are properly executed;
  • Application of processes and solutions focusing on expansion of the front-desk support competence;
  • Oversight of IT process model’s compliance with regulatory environment (standards, procedures, methodologies).
IT services
  • Securing of IT service transparency and quality control
  • Securing of continual service improvement and efficiency enhancement.
IT infrastructure
  • Arrangement of centralized integrated monitoring system;
  • Arrangement of shared service directory, unification of basic network services and applications;
  • Support of connection business processes in branches, set-up of new work stations;
  • Provision of reliable access to centralized resources due to enhanced operability of network equipment;
  • Cooperation with neighboring units in terms of transition to standard server platforms, monitoring systems, telecom channel standardization and IP telephony.
IT security
  • Security of IT, telecom and technological infrastructure;
  • Security of automated systems for technological management;
  • Security of sensitive information;
  • Arrangement and control of access for users;
  • Provision of public key infrastructure;
  • Monitoring of security for IT and telecom infrastructure.

During the reported period the Company has prepared and adopted the program on the integrated security system to be set up for the Company’s communication and technological systems in 2016-2018 (23). Under the program we designed a range of information security segments in our Sverdlovenergo and Permenergo branches.

Development of Automated Systems of Technological Management:

The program for upgrade of information acquisition and transmission systems at 35-110 kV substations, approved by SO UES (OAO), is a high-priority target program on the development of automated systems of technological management. The program was initiated and approved in 2010, its scheduled adjustments being made on 11.08.2016.

40 30 20 10 50 60 70 Permenergo Sverdlovenergo, Chelyabenergo 2012 2013 2014 2015 2016 0 2017
The amount of 35-110 kV substations, equipped with up-to-date IATS, serves as an index of the program progress. Annual branch progress is presented on the chart, figures given as of Jan. 01.

The progress on other aspects of the ASTM development is presented below:

Sverdlovenergo branch:

  • Our affiliated company (Yekaterinburg Electric Grid Company) has launched the 1st stage of SCADA-based ADSM hardware and software upgrade. The 2nd stage (calculations) is being implemented, commissioning slated for 2017. The ADSM uses indigenous Russian software.
  • Initialization of design of the indigenous Russian ADSM hardware and software solution for “Central Electric Grids” production department. Execution of the project is slated for 2017.

Chelyabenergo branch:

  • Arrangement of ADSM uninterruptable power system at 7 35-110 kV substations.

All branches:

  • With the aid of the PAMS we automated the scheduling of ADSM equipment repair and maintenance and monitoring of progress. The PAMS has also certified and classified the ADSM and communications equipment related to information security.

Development of Automation of Business Applications:

Business applications evolved in compliance with requirements of the business and the Board-approved strategy on IT, automation and telecommunications in the following spheres:

  1. Initialization of the PAMS project (find more in “Network Exploitation” Section).
  2. Report on automation of the Company’s business processes (BTR project).

    The primary goals of the survey is to change existing methods and schemes used for administering business processes in light of modern information technologies, to generate an efficient administering model, consistent with best global practices. A special focus is to enhance return on assets and labor efficiency as well as to decrease the cost of ownership of production assets and to invest reasonably with adjustments for the market environment. The analysis showed that the existing scheme is not aimed at technological assets and consumers and has information gaps in adjacent business processes and administration levels. The essence of the project is to develop a corporate administration system encapsulating all business processes in the shared IT environment, focusing heavily on supply reliability and customer relations.

  3. 3. Development of the automated control system, liable for connection.

    The goal of the project is to build up a shared automated control system, liable for connection, covering every process stage from registering a filed connection request to concluding a contract (registration of requests filed with F2F customer service centers, service portals, production units, preparation of contracts, monitoring of contractual progress, reporting).

  4. Initialization of the geographic informational system.

    The following functions will be automated by the GIS:

    1. Spatial data control:
      • build up of shared spatial data base of the Company’s grid assets;
      • build up of centralized spatial data bank covering all service area of the Company;
      • GIS-based shared information space for interaction between the Company units;
      • quick presentation of reliable mapping and semantic information on the Company’s grid assets.
    2. Business process automation:
      • IT support of processes related to connection by presenting spatial and attribute data on location and credentials of the Company’s grid facilities;
      • IT support of processes related to exploitation and development of the Company’s grid facilities.
  5. Launch of “Telescope+”-based computing system.

    The project is designed to collect consumption data automatically and to calculate real capacity of the facilities, owned by grid operators, large generators and consumers. The computing system analyzes, processes and prepares data in line with consumer schemes as well as generates reports for the energy market operator and contractors.

  6. Upgrade of “Incidents” software (integration with the PAMS and launch of the extended off-the-line consumer recording system).

    The goal of the upgrade is to provide additional services by the system. The core focus of the integration with the PAMS is to exchange data at predetermined intervals between the systems without manual data input/upload procedures.

IT and telecom infrastructure progress:

The telecom system of IDGC of Urals (OAO) is a transport medium administering all business processes. The system is based on a primary communication net, built to bind all facilities of the Company. This primary net serves as a ground for secondary nets providing the following services:

  • Dispatcher telephony;
  • Corporate telephony;
  • Videoconferencing (used to arrange communication with branches, Yekaterinburg Electric Grid Company, Permenergo’s and Sverdlovenergo’s production departments, Rosseti);
  • Audio conferencing (used to arrange communication with branches, production departments and distribution units);
  • Transfer of data from technological management systems (automated systems of dispatcher management, automated metering system, etc.);
  • Transfer of data from information business systems (ERP system, automated system for electronic document flow, etc.);
  • Access to Internet, e-mail, intracorporate web-resources, etc.

Telecom networks evolve in compliance with the Board-approved strategy on IT, automation and telecommunications. During the reported period we also achieved the following objectives with regard to development of technological telecom systems:


  • IATS communication channels for two 110 kV substations, arranged under the IATS upgrade program approved by SO UES (OAO).
  • In-house arrangement of IATS communication channels for seven 35-110 kV substations to improve observability.
  • Project documents regarding build-up of the Company’s communications complex facilitating arrangement of 2018 FIFA World Cup Russia.


  • IATS communication channels for eight 110 kV substations, arranged under the IATS upgrade program approved by SO UES (OAO).
  • In-house arrangement of IATS communication channels for eight 35-110 kV substations to improve observability.


  • IATS communication channels for three 110 kV substations, arranged under the IATS upgrade program approved by SO UES (OAO).

Participation in “Bridging the Digital Gap” federal action program: The program is socially oriented and stipulates set-up of broadband infrastructure to provide residents of small and remote settlements with telecom services (incl. Internet access). One of prospective and quick means to bring broadband telecom lines to these settlements is to mount fibers onto existing multi-voltage power lines. In line with the program IDGC of Urals (OAO) prepared 73 specifications (950 km of cables) and arranged access of contractors to power lines to have FOCL mounted.

Cost cutting on IT and telecommunications:

During 2016 we did a lot to develop IT infrastructure and reduce expenses due to alignment of administration approaches, compliance with generally accepted corporate standards, reduced quantity of software and hardware, automation of production and technological processes. The Company has spent RUB 281.92 million to automate administration of technological and business processes, upgrade communications facilitating operability of all automation systems. As a result, we observe the progress in quality of administrative and financial discipline, in quality and efficiency of IT services available to all employees of the Company engaged in production and administration of the Company’s operations.

80 60 40 20 100 120 140 2012 2013 2014 2015 2016 0 Expenses on IT Expenses on IATS Total
In 2015-2016 there was a sharp increase of material expenses. To maintain required level of information security and reliable exploitation of IT systems, we have upgraded our computers from Windows XP to Windows 7 on during 2015-2016, substituting outdated equipment in branches and production departments.

43% of outdated equipment, non-compliant with technical and operating requirements, was upgraded. Expenses on telecommunication services related to Internet access and channel lease were reduced due to lowered tariffs on services and insufficient technical resources of telecom operators to arrange channels for remote distribution zones. Considerable decrease of IT-strategy expenses is a result of correct classification of expenses bringing future economic benefits incurred during the reported period. Since 2015 expenses on upgrade and launches are recognized as deferred costs driving budget expenses down.

Cost-cutting on telecom and technological systems is due to:

  • Switchover to in-house ASDM/DOCS equipment maintenance and repair;
  • Installation of proprietary communication channels, usage of fibers and unification of contracts with telecom operators;
  • Transition of long-distance-calls into the corporate telecom network.
Здесь вы можете скачать полный отчет 2016, отдельные главы в формате PDF и наиболее важные таблицы в формате Excel.
1About company
1.1Mission and strategic goals
1.2Market share
1.3Key 2016 events
2Board of directors’ progress report
2.1Letter to stockholders
2.2Production capital formation
2.2.1Network exploitation
2.2.2Electricity transmission
2.2.3Technological connection
2.2.4Development of telecommunications and IT systems
2.2.7Efficacy enhancement
2.3Financial capital formation
2.3.1Analysis of revenues and expenses
2.3.2Analysis of financial standing
2.3.3Analysis of receivables and payables
2.3.4Analysis of credit portfolio
2.3.5Description of tariff policy
3Corporate governance
3.1Corporate governance practices
3.2Corporate governance system
3.2.1General meeting of stockholders
3.2.2Board of Directors
3.2.3Board of directors’ committees
3.2.4General director and executive board
3.2.5Remuneration and compensation policy
3.3Oversight system
3.3.1Board of internal auditors
3.3.2Independent auditor
3.3.3Internal control
3.3.4Risk management
3.3.5Security and anti-corruption
3.4Investor and stockholder relations
3.4.1Shareholder capital structure
3.4.2 Shareholder rights
3.4.3The company and stock market
3.4.4Communications with market participants
3.4.6Allocation of profit
4.1Human resources management
4.2Customer support
4.3Supplier relationship management
4.4Public and goverment relations
4.5Environment protection
5.1Prepared under Russian accounting standards
5.2Prepared under international financial reporting standards
5.3Related-party transaction report
5.4Corporate governance code compliance report
5.6Abbreviations and acronyms