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Annual Report 2015
RU

We have been progressively optimising technical terms and capital costs. This will eventually help to reduce the customers’ costs related to technological connection.

Alexey Molsky

Deputy Chairman of the Management Board of Federal Grid Company

Customer-Oriented Approach in Developing High-Quality Services

Technological connection is a service package which the Company offers to connect electricity consumers’ power receivers, electricity producing facilities and grid facilities to Federal Grid Company’s electric grids.

We provide a full package of technological connection to electric grids: we accept an application for technological connection, develop technical conditions, sign a contract, obtain a permit from the federal power supervision authority for the commissioning of the applicant’s facilities, and issue a connection report.

CLIENT-ORIENTED APPROACH

Federal Grid Company focuses its efforts on increasing the transparency and accessibility of the technological connection to the grids. The Company is implementing an action plan “Increasing the Accessibility of the Power Infrastructure” approved by the Russian Government, which provides for reduced timelines and stages of technological connection.

Federal Grid Company’s customers have interactive access to the Technological Connection Portal at www.fsk-ees.ru (section About the Company / Customers / Technological Connection Services), which provides full and up-to-date information about technological connection to customers.

We provide technological connection services to new and existing customers if the latter need to change the operating parameters of their power facilities. The Company enters into direct contracts with customers in all constituent entities of the Russian Federation where grid facilities of Federal Grid locate subject to the restrictions set by the Federal Law No. 35 and Technological Connection Rules.

In 2015, Federal Grid Company signed 210 agreements for technological connection with customers and distribution grid companies and generation companies. The total maximum capacity for technological connection of consumers and distribution grid companies was 2.8 GW, and 5.4 GW for electricity production facilities.

See changes in technological connection KPIs in Appendix 1 to Annual Report

Question for Alexey Molsky - Deputy Chairman of the Management Board of Federal Grid Company
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WHAT IS THE ECONOMIC MODEL OF TECHONOLOGICAL CONNECTION WHICH IS IMPLEMENTED AS PART OF THE LONG-TERM DEVELOPMENT PROGRAMME AND BASED ON A BALANCE OF INTERESTS AND FAIR SHARING OF RISKS BETWEEN APPLICANTS AND THE BACKBONE GRID COMPANY?

“This model of tariff regulation provides for the mitigation of financial risks for such regulated entities as Federal Grid Company, as well as minimisation of the cost of capital and earning of guaranteed but not excessive profits. As a result, this model makes it possible to pay dividends to shareholders.

The main principle of such tariff regulation is the recovery by the Company of all its reasonable costs related to the development and servicing of electric grids, including reasonable return on invested capital from the fee for technological connection or via including these costs in the tariff for electricity transmission.

WHAT IS THE STRATEGIC INITIATIVE TO ESTABLISH ATTRACTIVE TERMS AND CONDITIONS OF TECHNOLOGICAL CONNECTION?

“We have been progressively optimising technical terms and capital costs. This will eventually help to reduce the customers’ costs related to technological connection. Moreover, Federal Grid Company has large financial resources that help it to implement major technological connection projects in most Russian regions. Finally, we offer an attractive tariff which is one of the lowest tariffs for electricity transmission services.”

Connection of Customers and Electricity Generating Facilities, MW

Federal Grid Company’s Major Technological Connection Projects in 2015

Customer Facility Capacity, MW
JSC E.ON Russia Berezovskaya Hydro Power Station, Unit3 800
PJSC OGK-2 Cherepovets Hydro Power Station, Unit 4 420
JSC INTER RAO – Elektrogeneratsia Yuzhnouralskaya Hydro Power Station-2, Unit 1 400
JSC Fortum Chelyabinsk Heat and Power Plant-3, Unit 3 220
PJSC MOESK TC 110 kV MSU SS to 500 kV Ochakovo SS 83.17
JSC GAZPROMNEFT – Moscow Refinery 220 kV GPP-3 SS to 500 kV Chagino SS 67
Federal State-Run Enterprise “Aerospace Industry Research & Testing Centre” Vostochny Spaceport, Stage 1 60
LLC Yandex DC 110 kV Yandex SS 56
CJSC Vankorneft 110 kV NPS-1 SS 20
PJSC IDGC Ural TC 110 kV Ustinovo SS to 220 kV Khimkomplex SS 19.65
JS Tyumenenergo TP 110 kV Geolog SS to 220 kV Barsovo SS 18

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