Light Line
8 800 220-0-220 Contact CenterOJSC “MOESK” – 5 years!
We are open to cooperation and ready to offer information materials to journalists on the issues of the Company’s activity, help to arrange comments and interview with managers and leading specialists of PJSC “Rosseti Moscow Region”.
31.03.2010
MOESK Moscow Region’s Light Line
OJSC “MOESK” was established on 1 April 2005 based on the Moscow Region distribution electric grids. Service territory equals 47 thousand km square with number of inhabitants of approximately 17 millions. The Company took a leading place at the service market which means 95% in the Moscow Region and 98% in Moscow. The Company’s energy property includes 607 pieces of 35/110/220 kV high voltage feeding centers with total capacity of 43,713 MVA, 15,590 km of 35-220 kV electric energy transmission lines; 1,408 km of high voltage cable lines, 121,145 km thousand of distribution electric grids, and more than 30,800 of distribution points and transformer substations.
Main shareholders of OJSC “MOESK” are “IDGC Holding”, OJSC (51%), “Gazprom” Group of Companies (31%), and Moscow City Administration Group of Companies (8%). Amount of public float shares exceeds 8%.
Number of employees equals 15,755.
Electric Energy Distribution
The Company’s main activity is rendering services on electric energy transmission and distribution at Moscow and Moscow Region. Totally over 5 years, efficient electric energy issue has been equal to 332 kWt billion and increased by 20.1%. More than 70 kWt-hour of electric energy is transferred through the grids of OJSC “MOESK” annually. This amount of electric energy is issued annually by three large-scale Russian HPPs such as the SayanoShushenskaya HPP, the Krasnoyarsk HPP and the Bratsk HPP.
The Company carries out permanent work on reduction of technological losses at electric grids. As a result of it, OJSC “MOESK” has not exceeded a standard of technical losses set by the Russian Federation Ministry for Energy over the passed period. Particularly, economy from losses regarding the approved standard equaled 201.6 KWt-hour million, or 0.25% in the year 2009.
The Company’s proceeds from rendered services on electric energy transmission increased from the level of RUR 11.4 billion in 2005 to RUR 62.7 billion in 2009. It shows growth by 450%. Such a high rise in proceeds from rendering of services in electric energy transportation shall be explained by connection of JSC “MGEsK” (Moscow City Electric Grid Company) in 2008 and adoption of united electric energy transmission tariff calculation scheme since January 2008.
Technological Connection
OJSC “MOESK” renders services on consumers’ technological connection to electric grids in Moscow city and Moscow Region. Amount of payment for technological connection shall be set by authorized executive bodies in the field of tariff regulation, as follows:
In Moscow city – by the Regional Energy Commission of Moscow, in the Moscow Region – by the Fuel and Energy Committee of the Moscow Region.
Over five years of its operation, OJSC “MOESK” has connected consumers for total capacity exceeding 1,333 MVA (megavoltampere).
Financial results
Total pure profit of the Company over 5 years equals RUR 18.4 billion. Main part of profit is spent on the Company’s development annually.
Investment program and repairs
Totally, OJSC “MOESK” has spent more than RUR 108 billion to develop the Moscow Region electric grids (to compare, is equals five annual budgets of the Republic of Karelia). It allowed for both increase in reliability of consumers’ electric energy supply and connection of ten thousands of new ones. Over 5 years, 7,205 MVA of transformer capacity and about 5,000 km of electric energy transmission lines have been put into operation. This amount shall be enough to provide for failure-free electric energy supply of together Belgorod and Lipetsk regions.
OJSC “MOESK” carries on realization of Agreements with Administrations of Moscow city and the Moscow Regions regarding maintenance of Investment programs on electric energy objects’ building and reconstruction. Realization of the “Program for development of the Moscow Region 110 (35) kV capacity electric grids” is being continued.
Important objects at the territories of Moscow and the Moscow Region require special attention. They include such national projects as “Bolshoe Domodedovo”, “Gorod A-101”, “Rublevo-Arkhangelskoe”, “Moscow-City”.
Starting from the moment of the Company’s creation, most weaknesses have been fixed. The Company’s specialists have faced their first autumn and winter maximum loading period under conditions of a hard regime situation. There were lots of points with systematical equipment overloading. Lines and transformers at substations had been working without reserves. Overloading of feeding centers equaled 95%. Over 5 years, large-scale works on reconstruction of electric energy transmission lines and substations have been carried out.
In general, the Company has spent about RUR 15.3 billion on implementation of repair programs over the 2005-2009 period.
Securities
OJSC “MOESK” securities stock exchange history has started in 2006. As of today, shares of OJSC “MOESK” are included in “A1” quotation list of “MICEX”, CJSC; “A2” quotation list of RTS, CJSC. Bonds of OJSC “MOESK” are include in “A1” quotation list.
Today, OJSC “MOESK” is included in the list of industrial enterprises securities of which are accepted as loan collateral in the Bank of Russia.
The Russian Federation Central Bank has included stocks of OJSC “MOESK” in Lombard list of strategic companies.
Over 5 years, the Company’s capitalization has increased by more than 5.5 times. Prior to its jubilee, it equals approximately RUR 80 billion.
Moody’s Investors Service international company annually approves creditability of OJSC “MOESK”. As of the end of 2009, the Company has been granted “stable” Ba2 level rate at international scale and Aa2.ru level at national one.
Clients Relations
• United Center for Client Service has been established in Moscow.
• Similar “single windows” operate at every branch at the Moscow Region.
• Internet reception of the General Director has been opened at the Company’s web-site.
• For convenience of consumers, OJSC “MOESK” has established a twenty-four-hour “Light Line”. Electric energy consumers of Moscow and Moscow Region have the possibility to apply with questions regarding technological breaches and electric energy supply failures using a single free telephone number
• 8-800-700-40-70.
• Electronic system for account and proceeding of applications for technological connection is being improved. A possibility to trace consideration of the application by the client through the Company’s Internet web-site has been introduced.
• Optimization and standardization of processes on work with light consumers have been started.
New technologies
OJSC “MOESK” uses the most modern technologies in its operation. In 2009, the Center of Grids Management (CGM) under OJSC “MOESK” has started to operate. It is one of the largest European centers devoted to operate management of 0.4-220 kV electric grids complex in Moscow.
The CGM allows for live control over parameters and technical state of OJSC “MOESK” electric grid complex for dispatchers. It allows for regulation of the electric grid equipment operation and actions of mobile service teams as well. The Center’s management area includes 127 substations and 209 electric energy transmission lines with 35-220 kV capacity.
United technological information area provides for urgent determination of scale and possible consequences of accidents in a real-time mode, increases effectiveness of works, resources and personnel management during accidents disposal, reduces duration of electric energy supply failures, and provides for general increase in Moscow consumers’ electric energy supply reliability.
Last year, the first stage in introduction of navigation system has been completed. A system consisting of one central and five dispatch center branches has been put into industrial operation. More than 300 vehicles of OJSC “MOESK” are connected to the GLONASS System (Global Navigation System). It is an important step towards optimization of vehicle usage and the first large-scale project on introduction of a corporate vehicle monitoring system in the Russian electric energy sector.
Results and Development Prospective
While summarizing the results of the Company’s operation over five years, Andrey Konovalov, the General Director of OJSC “MOESK” has mentioned, as follows:
«Our responsibility area provides for special requirements to electric energy supply reliability: first of all, the Moscow Region contains state governance bodies. Secondly, we work with a high level infrastructure and correspondingly high loading for both parties of consumers and generation.
Implementation of a unprecedented investment and repair program by OJSC “MOESK” had its results. While lack of capacity in the Moscow Region equaled 640 MWt under minus 29 degrees external air temperature and 16.2 GWt energy consumption in 2006 provided for introduction of this capacity consumption, at last year December loading increased to 17.2 GWt under the same temperature variety and consumers did not face capacity deficit. The system has been working stable including both generation and distribution grids. It is a direct evidence of the fact that investments in the Moscow Region energy sector carried out over these five years have “reached the goal”. We step to the next five years period. In three-four months, a new strategy for the Company’s development is to be prepared. Reliability and failure-free electric energy supply of consumers are the first priorities. The second one is increase in operational effectiveness. This problem is of the same importance as the problem of equipment depreciation. I consider solving of the issue in introduction of process methods for management as well as standardization and optimization of major business processes. We are going to create elements of the Company’s matrix system. Experience shows matrix elements as creation of working groups for consideration of different issues to be highly effective.
Another major aim is optimization of capital investment structure. It will allow for a possibility to reduce amount of unfinished building and start development of pilot grounds for introduction of advanced innovation equipment at distribution grid complex. That’s why we are planning to invest in experimental and construction, as well as scientific and development works.
Moreover, OJSC “MOESK” remains a client oriented company. Within one or two years, we aim becoming leaders among IDGC of Russia in the field of technical connection of consumers.
I would like to note separately the fact that OJSC “MOESK” is to shift to the RAB tariff regulation method altogether with other departments of “IDGC Holding”, JSC starting from 1 January 2011. Currently, the Company carries out market estimation of assets. Further, tariff components of OJSC “MOESK” for coming three years are to be determined. RAB-regulation will provide for a possibility to regulate operational costs effectively, and allow for increase of investment components in tariffs”.
OJSC “MOESK” was established on 1 April 2005 based on the Moscow Region distribution electric grids. Service territory equals 47 thousand km square with number of inhabitants of approximately 17 millions. The Company took a leading place at the service market which means 95% in the Moscow Region and 98% in Moscow. The Company’s energy property includes 607 pieces of 35/110/220 kV high voltage feeding centers with total capacity of 43,713 MVA, 15,590 km of 35-220 kV electric energy transmission lines; 1,408 km of high voltage cable lines, 121,145 km thousand of distribution electric grids, and more than 30,800 of distribution points and transformer substations.
Main shareholders of OJSC “MOESK” are “IDGC Holding”, OJSC (51%), “Gazprom” Group of Companies (31%), and Moscow City Administration Group of Companies (8%). Amount of public float shares exceeds 8%.
Number of employees equals 15,755.
Electric Energy Distribution
The Company’s main activity is rendering services on electric energy transmission and distribution at Moscow and Moscow Region. Totally over 5 years, efficient electric energy issue has been equal to 332 kWt billion and increased by 20.1%. More than 70 kWt-hour of electric energy is transferred through the grids of OJSC “MOESK” annually. This amount of electric energy is issued annually by three large-scale Russian HPPs such as the SayanoShushenskaya HPP, the Krasnoyarsk HPP and the Bratsk HPP.
The Company carries out permanent work on reduction of technological losses at electric grids. As a result of it, OJSC “MOESK” has not exceeded a standard of technical losses set by the Russian Federation Ministry for Energy over the passed period. Particularly, economy from losses regarding the approved standard equaled 201.6 KWt-hour million, or 0.25% in the year 2009.
The Company’s proceeds from rendered services on electric energy transmission increased from the level of RUR 11.4 billion in 2005 to RUR 62.7 billion in 2009. It shows growth by 450%. Such a high rise in proceeds from rendering of services in electric energy transportation shall be explained by connection of JSC “MGEsK” (Moscow City Electric Grid Company) in 2008 and adoption of united electric energy transmission tariff calculation scheme since January 2008.
Technological Connection
OJSC “MOESK” renders services on consumers’ technological connection to electric grids in Moscow city and Moscow Region. Amount of payment for technological connection shall be set by authorized executive bodies in the field of tariff regulation, as follows:
In Moscow city – by the Regional Energy Commission of Moscow, in the Moscow Region – by the Fuel and Energy Committee of the Moscow Region.
Over five years of its operation, OJSC “MOESK” has connected consumers for total capacity exceeding 1,333 MVA (megavoltampere).
Financial results
Total pure profit of the Company over 5 years equals RUR 18.4 billion. Main part of profit is spent on the Company’s development annually.
Investment program and repairs
Totally, OJSC “MOESK” has spent more than RUR 108 billion to develop the Moscow Region electric grids (to compare, is equals five annual budgets of the Republic of Karelia). It allowed for both increase in reliability of consumers’ electric energy supply and connection of ten thousands of new ones. Over 5 years, 7,205 MVA of transformer capacity and about 5,000 km of electric energy transmission lines have been put into operation. This amount shall be enough to provide for failure-free electric energy supply of together Belgorod and Lipetsk regions.
OJSC “MOESK” carries on realization of Agreements with Administrations of Moscow city and the Moscow Regions regarding maintenance of Investment programs on electric energy objects’ building and reconstruction. Realization of the “Program for development of the Moscow Region 110 (35) kV capacity electric grids” is being continued.
Important objects at the territories of Moscow and the Moscow Region require special attention. They include such national projects as “Bolshoe Domodedovo”, “Gorod A-101”, “Rublevo-Arkhangelskoe”, “Moscow-City”.
Starting from the moment of the Company’s creation, most weaknesses have been fixed. The Company’s specialists have faced their first autumn and winter maximum loading period under conditions of a hard regime situation. There were lots of points with systematical equipment overloading. Lines and transformers at substations had been working without reserves. Overloading of feeding centers equaled 95%. Over 5 years, large-scale works on reconstruction of electric energy transmission lines and substations have been carried out.
In general, the Company has spent about RUR 15.3 billion on implementation of repair programs over the 2005-2009 period.
Securities
OJSC “MOESK” securities stock exchange history has started in 2006. As of today, shares of OJSC “MOESK” are included in “A1” quotation list of “MICEX”, CJSC; “A2” quotation list of RTS, CJSC. Bonds of OJSC “MOESK” are include in “A1” quotation list.
Today, OJSC “MOESK” is included in the list of industrial enterprises securities of which are accepted as loan collateral in the Bank of Russia.
The Russian Federation Central Bank has included stocks of OJSC “MOESK” in Lombard list of strategic companies.
Over 5 years, the Company’s capitalization has increased by more than 5.5 times. Prior to its jubilee, it equals approximately RUR 80 billion.
Moody’s Investors Service international company annually approves creditability of OJSC “MOESK”. As of the end of 2009, the Company has been granted “stable” Ba2 level rate at international scale and Aa2.ru level at national one.
Clients Relations
• United Center for Client Service has been established in Moscow.
• Similar “single windows” operate at every branch at the Moscow Region.
• Internet reception of the General Director has been opened at the Company’s web-site.
• For convenience of consumers, OJSC “MOESK” has established a twenty-four-hour “Light Line”. Electric energy consumers of Moscow and Moscow Region have the possibility to apply with questions regarding technological breaches and electric energy supply failures using a single free telephone number
• 8-800-700-40-70.
• Electronic system for account and proceeding of applications for technological connection is being improved. A possibility to trace consideration of the application by the client through the Company’s Internet web-site has been introduced.
• Optimization and standardization of processes on work with light consumers have been started.
New technologies
OJSC “MOESK” uses the most modern technologies in its operation. In 2009, the Center of Grids Management (CGM) under OJSC “MOESK” has started to operate. It is one of the largest European centers devoted to operate management of 0.4-220 kV electric grids complex in Moscow.
The CGM allows for live control over parameters and technical state of OJSC “MOESK” electric grid complex for dispatchers. It allows for regulation of the electric grid equipment operation and actions of mobile service teams as well. The Center’s management area includes 127 substations and 209 electric energy transmission lines with 35-220 kV capacity.
United technological information area provides for urgent determination of scale and possible consequences of accidents in a real-time mode, increases effectiveness of works, resources and personnel management during accidents disposal, reduces duration of electric energy supply failures, and provides for general increase in Moscow consumers’ electric energy supply reliability.
Last year, the first stage in introduction of navigation system has been completed. A system consisting of one central and five dispatch center branches has been put into industrial operation. More than 300 vehicles of OJSC “MOESK” are connected to the GLONASS System (Global Navigation System). It is an important step towards optimization of vehicle usage and the first large-scale project on introduction of a corporate vehicle monitoring system in the Russian electric energy sector.
Results and Development Prospective
While summarizing the results of the Company’s operation over five years, Andrey Konovalov, the General Director of OJSC “MOESK” has mentioned, as follows:
«Our responsibility area provides for special requirements to electric energy supply reliability: first of all, the Moscow Region contains state governance bodies. Secondly, we work with a high level infrastructure and correspondingly high loading for both parties of consumers and generation.
Implementation of a unprecedented investment and repair program by OJSC “MOESK” had its results. While lack of capacity in the Moscow Region equaled 640 MWt under minus 29 degrees external air temperature and 16.2 GWt energy consumption in 2006 provided for introduction of this capacity consumption, at last year December loading increased to 17.2 GWt under the same temperature variety and consumers did not face capacity deficit. The system has been working stable including both generation and distribution grids. It is a direct evidence of the fact that investments in the Moscow Region energy sector carried out over these five years have “reached the goal”. We step to the next five years period. In three-four months, a new strategy for the Company’s development is to be prepared. Reliability and failure-free electric energy supply of consumers are the first priorities. The second one is increase in operational effectiveness. This problem is of the same importance as the problem of equipment depreciation. I consider solving of the issue in introduction of process methods for management as well as standardization and optimization of major business processes. We are going to create elements of the Company’s matrix system. Experience shows matrix elements as creation of working groups for consideration of different issues to be highly effective.
Another major aim is optimization of capital investment structure. It will allow for a possibility to reduce amount of unfinished building and start development of pilot grounds for introduction of advanced innovation equipment at distribution grid complex. That’s why we are planning to invest in experimental and construction, as well as scientific and development works.
Moreover, OJSC “MOESK” remains a client oriented company. Within one or two years, we aim becoming leaders among IDGC of Russia in the field of technical connection of consumers.
I would like to note separately the fact that OJSC “MOESK” is to shift to the RAB tariff regulation method altogether with other departments of “IDGC Holding”, JSC starting from 1 January 2011. Currently, the Company carries out market estimation of assets. Further, tariff components of OJSC “MOESK” for coming three years are to be determined. RAB-regulation will provide for a possibility to regulate operational costs effectively, and allow for increase of investment components in tariffs”.