2014-2016 timeline of the Company’s core production assets:
|6-220 kV substations||pcs||31 103||31 716||32 068|
|Total capacity installed||MVA||30 167||30 393||30 611|
|35-220 kV substations||pcs||1 042||1 042||1 048|
|MVA||21 612||21 639||21 738|
|6-10(35)/0.4 kV transformer substations||pcs||30 041||30 658||31 002|
|MVA||8 555||8 754||8 873|
|6-10 kV distribution stations||pcs||20||16||18|
|0.4-10 kV aerial power lines||km||117 943||119 251||120 206|
|220 kV and over 220 kV||km||27||27||27|
|110-150 kV||km||18 105||18 138||18 131|
|35 kV||km||8 109||8 059||8 061|
|6-10 kV||km||50 548||50 831||51 004|
|0.4 kV||km||41 154||42 196||42 983|
|0.4-110 kV cable power lines||km||6 103||6 365||6 476|
|220 kV and over 220 kV||km||-||-||-|
|6-10 kV||km||3 500||3 662||3 736|
|0.4 kV||km||2 426||2 517||2 553|
Build-up of the Production Asset Management System (schedule period for implementation: 2016-2018)
The Production Asset Management System (PAMS) is a control system for asset management, liable for generation of management policy, goals and processes. The system regulates and coordinates performance of the Company, managing physical assets and performance profile in such a manner so as to find appropriate balance between costs and regulatory compliance and reach strategic targets.
Key goals are:
- Integration of existing metering devices into the centralized system.
- Intensification of production-related operating and investment expenses;
- Securing a long-term transparent tariff mechanism, based on Reliability/Expenses ratio;
- Control over achievement of a specified supply reliability.
- Development and alignment of organizational and regulatory base for production asset management;
- Liberalization of regulatory and technical documentation regarding changes in facility repair and maintenance cycles depending on health of equipment and power lines;
- Coherent transition from the plan-and-prevent system to the system of health-based asset management, with allowances made for breakage risks;
- Automation of the PAMS core and supporting processes.
- Rationalization of investment decisions, enhancement of return on investments and efficient enforcement of cost allocation, evaluation of risks, network development prospects, load and equipment life;
- Cutdown of the Company’s material losses, driven by decreased recovery and unscheduled works, emergency destocking, optimization of the man-loading schedule;
- Enforcement of operational transparency;
- Increased fidelity of data on asset health, flexibility and availability of third-party information.
In 2016 we have launched the following functions of the “Repair and Maintenance” process control system:
- Scheduling of repair program works and resources;
- Calculation of repair program expenses;
- Planning of physical quantity, expenses and resources for maintenance, diagnostics, expert examination and survey.
Repair orders for the 2017 repair program were generated in the “Repair and Maintenance” process control system with due regard to equipment health and breakage consequences. The share of the core equipment, covered by the 2017 repair program, totaled 100%. Repair programs of the branches are prepared with the aid of the single material and equipment guide. Motor vehicles, buildings and installations were classified in line with single classifiers and guides. Implementation of the “Repair and Maintenance” process control system enforces feasibility of decisions, quick access to sources information, enhanced planning quality, oversight of resource use, analysis of planning quality and expenditures.
- Automation of digital certification of substations and power lines to be used by the geographical information system (GIS).
- Integration of the PAMS with “Incidents” software solution.
- Design of the equipment defect register, implemented in line with the Rosseti’s typical specification for defect register automation.
The integration enables:
- a)to display data in the shared system;
- b)to record technological disturbances and technical arrangements carried on the equipment, fostering better quality of the repair and maintenance program scheduling;
- c)to form reports on investigation of technological disturbances, based on the PAMS data base and on-line information transmission;
- d)to avoid manual data input and data redundancy in several information systems;
- e)to minimize influence of human factors on data transfer.
Reports on weekly and quarterly repair and maintenance plans are generated automatically upon orders helping minimize human factors and burden and enhance data integrity. As of the year-end the automated reporting service has been running in a test mode.The launch of the system and transition to scheduling of equipment impacts factoring health of equipment and consequences of breakage will intensify technical impacts and maintain equipment on the back of optimal spending. As of 01.01.2017:
- 2,258,392 core equipment units have been digitally certified;
- HIC (Health Index Calculation) service for substations and relevant equipment has been launched, the index being applied to 72,325 equipment units;
- Network topology has been formed;
- Prioritizing registers on 10,725 equipment units have been formed;
- Breakage Consequences Evaluation Methodology have been implemented;
- The 2017 repair program has been formed by the “Repair and Maintenance” process control system.
Total repair costs of the Company’s branches in 2016 totaled RUB 379 million or 21% (outsourcing) and RUB 1,400 million or 79% (in-house).
|Power line overhaul, km||10 400||11 300||10 582||10 420||10 201|
|Power line corridor clearing, ha||7 178||7 407||11 625||11 414||10 825|
|Transformer overhaul, pcs.||54||55||40||33||41|
|Switching unit overhaul, pcs||3 370||3 462||3 216||3 125||2 966|
|Total repair costs, RUB||1 364||1 578||1 598||1 746||1 779|
Repair scope was impacted by habitual activities based on repair cycles. We intensified power line corridor clearing since 2014 to end up with 5.5-year clearing cycle. The repair target value for 2017 is RUB 1,809 million or +2% YoY, with RUB 1,401 million (77%) to be spent on in-house works and RUB 408 million (23%) to be spent on outsourcing.
Adaption to special period operations
With a view to provide stable operations of the grid facilities during the thunderstorm season the Company issued the decree (6) stipulating a package of compulsory and supportive measures to be enforced. The decree covered 9 organizational measures, 11 technical arrangements and 16 measures to increase lightning-surge proofness of the grid facilities to be implemented during the year. To ease negative impacts of thunder strokes on substations and consumer equipment our plans were to continue clearing and widening of the corridors, to replace defective ground wires, porcelain and defective insulators, bare cable (for SIP), valve-type arresters (for surge suppressors) and to conduct thermovision and ultraviolet inspections of suspended insulation. All scheduled compulsory and supportive measures were completed.
With a view to provide stable operations of the grid facilities during the flood period the Company issued the decree (7) and prepared registers of 35-110kV substations, sections of 6-110 kV aerial and cable power lines transformers, located in flood hazard zones, and grid facilities to be potentially cut off by the flood water from the road infrastructure.
30 substations, 16 distribution stations, 98 transformer substations, 2 buildings, 10 cable power lines (3 cable power lines and 7 cable ducts), 765 0.4-10 kV aerial power lines, 265 35-110 kV aerial power lines were registered as equipment under extreme danger. We enhanced monitoring of these facilities until the flood water subsided. We scheduled 28 compulsory measures and 741 supportive measures to provide stable operations of the grid facilities during the flood period. All measures were completed on time.
With a view to provide stable operations of the grid facilities during the fire season the Company issued the decree (8) stipulating 88 organizational and technical arrangements to enforce fire safety. All measures were completed. During the fire season our branches have not introduced special fire-related modes of operations. Analysis of incidents, compared YoY, demonstrates plateauing of fire events covered by incident investigation reports.
2016/2017 autumn-winter operations mirrored the previous periods, all systems operated within the normal organizational and technical range. The weather conditions were stable and had no serious impact on operations of the Company’s grid facilities. The Company’s personnel showed excellent abilities and skills to recover damaged facilities within the minimum period of time.
All resources and means of the Company’s recovery subsystem were used to provide stable 2015/2016 autumn-winter operations. All material resources were used to achieve the set objectives. Control bodies, recovery forces, equipped with vehicles, equipment and telecommunication means have coped with the tasks. Technical disturbances of 2015/2016 autumn-winter operations decreased 34.1% YoY. All branches of the Company and EESK reported disturbance quantity reduction, with maximum technological disturbance decrease of 40.5% in our Chelyabenergo branch.
During the reported period every operating employee had quarterly emergency response drills. All scheduled drills were conducted. Alongside with this, backup power stations underwent equipment operation tests.
Recovery resources of the Company are presented below:
- Mobile recovery teams, able to travel long distances (up to 1,500 km) to neighboring production units, branches, EESK, IDGCs, energy systems: 51 teams (287 workers and 106 vehicles and machinery).
- Own recovery teams in production units:
- 662 teams (3,350 workers, 1,451 vehicle and machinery);
- 190 “on duty” teams (630 workers, 185 vehicle and machinery);
- Outsourcing teams:
- 125 teams (1,251 workers, 245 vehicle and machinery).
- Backup power stations owned by the Company: 56 stations with capacity of ≥ 30 kW.
- Emergency supply: fully stocked, overall value of RUB 268.236 million. We have all required equipment and materials to restore power lines of any voltage class, substations, transformers, RPA and DOCS devices.
Property portfolio management:
|Physical terms: Aerial and cable power lines (km); substations and other facilities (pcs)||Book (residual) value as of 01.01.2016 (RUB thousand)||In 01.01.2016 -31.12.2016 (RUB thousand)||Out 01.01.2016 - 31.12.2016 (RUB thousand)||Charged amortization 01.01.2016 - 31.12.2016 (RUB thousand)||Book (residual) value as of 31.12.2016 (RUB thousand)|
|Assets, classified as grid facilities, namely:||-||43 005 358||6 360 160||78 275||5 092 494||44 194 749|
|220 kV and above aerial power lines||49||221 591||0||0||50 177||171 414|
|110 kV aerial power lines||25 976||8 981 514||510 844||2 201||825 470||8 664 687|
|35 kV aerial power lines||9 228||1 238 382||71 953||138||117 455||1 192 742|
|10 Kv and below aerial power lines||94 138||7 874 753||2 615 995||24 942||2 028 822||8 436 984|
|220 kV and above substations||3||293 376||0||0||46 768||246 608|
|110 kV substations||636||5 055 903||389 630||10 456||613 514||4 821 563|
|35 kV substations||409||824 232||114 321||270||113 854||824 429|
|10 kV and below substations||30 749||5 978 750||2 139 398||17 028||718 658||7 382 462|
|Cable power lines (all voltage classes)||6 476||6 438 898||122 629||7 636||237 287||6 316 604|
|Cable power lines (all voltage classes)||-||6 097 959||395 390||15 604||340 489||6 137 256|
|Non-core assets enlisted in the non-core asset register||44||136 672||6 295||4 044||3 991||134 933|
|Other assets, namely:||-||4 860 156||573 974||51 765||1 019 830||4 362 534|
|Owned land plots||465||79 352||568||0||0||79 920|
|Fixed assets (line in the balance sheet)||-||48 002 186||6 940 429||134 084||6 116 315||48 692 216|
|Rented assets, classified as grid facilities, namely:||-||1 602 014||2 564 368||1 111 793||1 300||3 053 289|
|220 kV and above aerial power lines||3||1 254||0||0||0||1 254|
|110 kV aerial power lines||93||7 815||27 910||7 678||0||28 047|
|35 kV aerial power lines||46||2 076||0||0||20||2 056|
|10 Kv and below aerial power lines||4 776||248 557||60 999||35 266||353||273 937|
|220 kV and above substations||1||26||116 123||0||0||116 149|
|110 kV substations||19||31 418||101 833||0||0||133 251|
|35 kV substations||7||369||0||0||21||348|
|10 kV and below substations||2 124||888 355||1 894 501||959 713||582||1 822 561|
|Cable power lines (all voltage classes)||2 577||312 621||140 964||87 450||206||365 929|
|Other rented assets, designed for electric connection||-||109 522||222 038||21 686||118||309 756|
|Other rented assets, namely:||-||4 219 268||860 427||369 615||0||4 710 080|
|Land plots||23 762||3 484 267||831 998||324 508||0||3 991 757|
|Assets, used under leasing agreements, classified as grid facilities, namely:||-||0||0||0||0||0|
|220 kV and above aerial power lines||-||-||-||-||-||0|
|110 kV aerial power lines||-||-||-||-||-||0|
|35 kV aerial power lines||-||-||-||-||-||0|
|10 Kv and below aerial power lines||-||-||-||-||-||0|
|220 kV and above substations||-||-||-||-||-||0|
|110 kV substations||-||-||-||-||-||0|
|35 kV substations||-||-||-||-||-||0|
|10 kV and below substations||-||-||-||-||-||0|
|Cable power lines (all voltage classes)||-||-||-||-||-||0|
|Other assets, used under leasing agreements, designed for electric connection||-||-||-||-||-||0|
|Other assets, used under leasing agreements||-||-||-||-||-||0|
|Total rented assets, including those used under leasing agreements||-||5 821 282||3 424 795||1 481 408||1 300||7 763 369|
|TOTAL:||-||53 823 468||10 365 224||1 615 492||6 117 615||56 455 585|
Sale of non-core assets:
|Asset||Book value, RUB thousand||Real sales value, RUB thousand||Spread, RUB thousand||Factors of the spread between the real sales value and book value of the asset|
|Apartment located at: 6-38 Ulitsa Bankovskaya, Artemovsky, the Sverdlovsk region||481,53||363,60||-117,93||The sales value was determined with allowances for discounts, compliant with the Company’s Regulations on Management of Housing and Utilities Facilities|
|Karat motor vessel||3 562,00||2 161,78||-1 400,22||The sales value was defined as a result of the sale arranged as a public offer.|
|1-story all-brick garage located at Kizel||0,00||270,18||270,18||The sales value was defined as a result of the sale arranged as a public offer.|
|Energy Service Company of the Urals (100% of the charter capital)||5 000,00||0,00||-5 000,00||The asset was struck off the Company’s balance sheet as it completed its voluntary liquidation and expulsion from the USRLE|
|Insurance Company “The Ring of the Urals” (7.4% interest)||0,00||0,00||0,00||The asset was struck off the Company’s balance sheet as it completed its voluntary liquidation and expulsion from the USRLE|
Consolidation of grid assets:
The 2016-2018 Grid Asset Consolidation Program of the Company was adopted by the Board of Directors (9). The aim of the program is to shape a united grid area on the territory of the Company’s operations and create single point of responsibility for reliable and high quality electricity supply and connection of new consumers to the consolidated networks. Rental contracts, voluntary transfer of ownership or free use and other kinds of consolidation were primary means of grid asset consolidation in 2016.
Implementation of the program is presented by the figure below:
|2014 г.||2015 г.||2016 г.|
|Consolidation of grid assets||Consolidation of grid assets||Consolidation of grid assets|
|IDGC of Urals, namely:||1 557||4 321||28 728||1 684||4 806||31 321||2 158||5 666||38 232|
|Acquisition of grid facilities||40||22||305||6||29||183||34||40||352|
|Rented grid facilities||1 482||3 345||23 776||1 649||3 832||26 587||2 103||5 397||37 243|
|Other (permanent rights of ownership and use)||6||41||112||0||3||9||13||103||329|
|Other (temporary rights of ownership and use)||29||913||4 535||29||942||4 543||8||126||308|
|Sverdlovenergo branch||607||1 698||12 976||560||1 711||12 712||526||2 236||16 491|
|Acquisition of grid facilities||40||22||305||5||28||123||32||0||279|
|Rented grid facilities||567||1 653||12 620||555||1 683||12 589||489||2 205||16 109|
|Other (permanent rights of ownership and use)||-||23||51||-||-||-||5||20||78|
|Other (temporary rights of ownership and use)||-||-||-||-||-||-||0||11||25|
|Permenergo branch||916||1 797||13 339||1 095||2 267||16 154||1 284||2 408||18 138|
|Acquisition of grid facilities||-||-||-||1,3||1,1||60,0||0||37||48|
|Rented grid facilities||887||883||8 799||1 065||1 324||11 552||1 281||2 319||17 953|
|Other (permanent rights of ownership and use)||0,4||1,0||5,2||-||-||-||3||52||137|
|Other (temporary rights of ownership and use)||29||913||4 535||29||942||4 543||0||0||0|
|Chelyabenergo branch||34||826||2 412||28||828||2 455||348||1 022||3 603|
|Acquisition of grid facilities||-||-||-||-||-||-||2||3||25|
|Rented grid facilities||28||809||2 356||28||825||2 446||333||873||3 181|
|Other (permanent rights of ownership and use)||5||17||56||0,04||3||9||5||31||114|
|Other (temporary rights of ownership and use)||-||-||-||-||-||-||8||115||283|
Acquisition – all grid assets acquired during the reported period;
Rentals – all grid assets, rented as of the year-end (i.e. all running contracts, incl. contracts concluded earlier, transactions in force as of the year-end);
Other (permanent rights of ownership and use) - all property acquired during the calendar period;
Other (temporary rights of ownership and use) – all running contracts as of the year-end, incl. contracts concluded earlier.
During the reported period we have closed a number of deals to improve operability of grid facilities and to lessen future connection costs. In the course of interaction with proprietors or other legal owners of network facilities, inconsistent with the RGO criteria embodied by the government decree (10) (with regard to the transfer of grid asset management functions), we analyzed consolidation of these assets in terms of feasibility, found a range of network assets attractive to us and negotiated consolidation prospects with the owners. Some of the assets owned by the RGOs were consolidated. Prevailing part of proprietors intends to reap benefits as RGOs further on, presenting inconsistent conditions for asset transfer.