Board of Directors of JSC “MOESK” Decides to Establish New Branch “Energouchet”

On 18 April of this year, the Board of Directors of JSC “MOESK” decided to establish a new branch of the Company, which is called “Energouchet”. The branch’s competence (after final completion of the required actions for establishment of this separate division) will include formation of electricity balance in grids of JSC “MOESK”.

The main goals of forming a new branch of the Company is to increase profitability of JSC “MOESK”, to reduce cost of electricity purchase to compensate losses in grids, to improve transparency of the function of electricity metering, to separate causes of formation of commercial and technical losses.

The principal activities of the branch will be: meter readings, installation, inspection, repair and maintenance of meters, formation of electricity balances in substations of DGD (distribution grids districts), EGD (electric grid districts), branches, coordination of Statements of Delimitation of Balance Book Ownership and Operational Responsibilities regarding electricity metering, etc. Concentration of the function of electricity accounting in one branch will optimize the Company’s expenses for maintenance of these functions, including at the expense of reducing the number of the staff working in the sphere of electricity accounting in electric grid branches, and improve effectiveness of electricity accounting activities.

As a result of operations of “Energouchet” - the branch of JSC “MOESK”, it is planned to increase the Company’s revenues by way of reducing the cost of compensation of electricity loss during its transmission through the grids of JSC “MOESK”, provision of additional services to electricity consumers, expanding of the number of consumers available in the additional services market.

From the moment of actual beginning of operations of the branch “Energouchet”, it is planned to strengthen significantly the work of reducing the level of losses in electric grids, and to bring the level of losses to 7.95% of the supply to the grids of JSC “MOESK” by 2016.