BOARD OF DIRECTORS’ PROGRESS REPORT
2.2.3

Technological connection

The regulatory framework, enforced by the Company to connect consumers to the networks in the service areas, is presented in “References” Appendix(11-20).

Demand for technological connection to electric networks mirrors last year’s demand. In 2016 we concluded 28,557 contracts (-5% YoY). Total requests for technological connection, filed with the Company, decreased slightly on 2015 to reach 35,170 requests. The amount of the executed contracts in 2016 is -11% YoY: 30,546 consumers were connected to the networks against 34,429 consumers in 2015. The capacity of the concluded contracts is also lowering (-23% YoY). But connected capacitance totaled 1,258 MW (+16% YoY).

Key trend to be easily outlined is that demand for technological connection to networks in residential development continued to persist. We also see gradual uptick in the connections of small-scale generation facilities to our electric networks. During the reported period the Company has performed a range of activities, stipulated by the corporate network availability roadmap: automation of in-house business processes, simplification of access to information for consumers, incl. approval of the program regulating development of the F2F customer services (Customer Service Centers and Units), improvement of on-line services and increase of in-house workscope.

Demand for connection (pcs.)

Requests filed
15,714 2016 2015 14,612 10,951 11,833 8,587 36,134 35,170 9,607 3 % 7 % 7 % 12 % Permenergo Chelyabenergo Sverdlovenergo
Contracts concluded
12,294 2016 2015 11,626 9,078 10,358 7,545 30,197 28,557 7,853 5 % 5 % 12 % 4 % Permenergo Chelyabenergo Sverdlovenergo
Contracts executed
13,109 2016 2015 12,572 10,019 11,504 9,816 34,429 30,546 7,955 11 % 4 % 13 % 19 % Permenergo Chelyabenergo Sverdlovenergo

Demand for connection (MW)*

Requests filed
704 2015 562 723 1,990 2016 692 431 2,019 896 2 % 23 % 24 % 1 % Permenergo Chelyabenergo Sverdlovenergo
Contracts concluded
299 2016 2015 280 200 323 315 937 721 242 23 % 7 % 38 % 23 % Permenergo Chelyabenergo Sverdlovenergo
Contracts executed
294 2016 2015 479 464 232 555 1,080 1,258 315 43 % 16 % 63 % 100 % Permenergo Chelyabenergo Sverdlovenergo

Three categories of filers (production and distribution of electricity, gas and water, educational institutions and manufacturing) showed a dramatic decline of requests for technological connection in 2016, as compared to 2015.

Connection request comparison for 2015-2016 is presented in the figure below:

Connection requests filed* Change
2015 2016 absolute % absolute %
pcs MW pcs MW pcs pcs MW MW
Individuals 27 820 359,03 28 069 354,97 249 +0,9 -4,06 -1,1
Agriculture, hunting and forestry 632 54,62 471 70,44 -161 -25,5 15,82 +29
Fishery and fish farming 2 0,05 3 0,73 1 +50 0,69 +1528,9
Mining operations 38 43,50 33 73,52 -5 -13,2 30,02 +69
Manufacturing 162 74,66 107 103,62 -55 -34 28,96 +38,8
Production and distribution of electric energy, gas and water (generators) 12 176,91 5 66,60 -7 -58,3 -110,31 -62,4
Production and distribution of electric energy, gas and water (electric networks of regional grid operators) 56 184,77 66 76,53 10 +17,9 -108,24 -58,6
Production and distribution of electric energy, gas and water (others) 305 138,85 318 204,14 13 +4,3 65,30 +47
Real estate development 1 145 293,41 924 270,62 -221 -19,3 -22,78 -7,8
Wholesale and retail distribution; repair of cars, motorcycles, household goods and personal appliances 931 36,92 719 48,03 -212 -22,8 11,11 +30,1
Transportation and communications 377 13,04 804 12,93 427 +113,3 -0,11 -0,9
Education institutions 143 16,94 86 11,88 -57 -39,9 -5,06 -29,9
Healthcare and social service institutions 142 8,40 122 7,40 -20 -14,1 -0,99 -11,8
Other 4 369 588,56 3 443 717,89 -926 -21,2 129,33 +22
INDUSTRY TOTAL 8 314 1 630,62 7 101 1 664,34 -1 213 -14,6 33,72 +2,1

Connection contracts cancelled during the reported period

Connection contracts cancelled during the reported period
pcs MW RUB million returned, net of VAT Contract value, RUB million, net of VAT
2015
Permenergo 617 58 28,83 264,40
Sverdlovenergo 1402 53 65 154,32
Chelyabenergo 854 121 10,00 74,01
Total 2873 232,04 104,02 492,72
2016
Permenergo 682 (+11% by 2015) 276 (+373%) 15,17 (-47%) 156,4 (-41%)
Sverdlovenergo 1190 (-15%) 47 (-10%) 4 (-94%) 95,21 (-38%)
Chelyabenergo 1212 (+42%) 158 (+30%) 56,41 (+464%) 861,95 (+1065%)
Total 3084 (+7%) 480,62 (+107%) 75,17 (-28%) 1 113,55 (+126%)

Connection requests are waived in the following cases:

  • A filer changes his/her intentions (changes in terms for construction of filer’s equipment),
  • A filer waives the project (no funds to initiate or proceed with construction),
  • A filer has no intentions to construct any facilities (specifications are received just to increase the value of a land plot),
  • Specifications expire.

During 2016 Permenergo cancelled

682
contracts
(276 MW total capacity, RUB 156.4 million total value, net of VAT), cancellations rising 11% YoY. Most of the contracts (86%) were cancelled by 0-15 kW filers, 73% of cancellations done by individuals.

During 2016 Sverdlovenergo cancelled

1190
contracts
(47 MW total capacity, RUB 95.21 million total value), cancellations declining 15% YoY. Most of the contracts (93%) were cancelled by 0-15 kW filers (1,108 contracts), 79% cancellations done by individuals (940 contracts).

During 2016 Chelyabenergo cancelled

1 212
contracts
(158 MW total capacity, RUB 861.95 million total value), cancellations rising 42% YoY. Most of the contracts (77%) were cancelled by 0-15 kW filers, 60% of cancellations done by individuals.
ЦЕНТР ЗАГРУЗКИ
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
2.2.5Investments
2.2.6Innovations
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
3.4.5FAQ
3.4.6Allocation of profit
4Stakeholder
4.1Human resources management
4.2Customer support
4.3Supplier relationship management
4.4Public and goverment relations
4.5Environment protection
5Appendices
5.1Prepared under Russian accounting standards
5.2Prepared under international financial reporting standards
5.3Related-party transaction report
5.4Corporate governance code compliance report
5.5References
5.6Abbreviations and acronyms