Appendices

• 14.1 Supplemental Information
• 14.2 Key Principles of Accounting Policy
• 14.3 Financial Reporting of the Company for 2010 (Bookkeeping Forms)
• 14.4 Report of the Auditor
• 14.5 Opinion of the Audit Commission
• 14.6 Information on the Company’s Compliance with the Corporate Management Code
• 14.7 Information on the Company’s Compliance with the Corporate Behavior Code
• 14.8 List of Interested Party Transactions of the Company in 2010
• 14.9 Electric Power Losses
• 14.10 Information on Unaccounted and Non-contractual Electric Power Consumption
• 14.11 Information on the Introduction of Partial and Complete Limitation in Electric Power Consumption to Non-paying Customers on the Request of Power Sales Companies
• 14.12 Debts of Consumers towards the Network Company for Electric Power Transmission Services. Debts of the Network Company for Electric Power Purchase to Compensate Electric Losses
• 14.13 Declared and Defined Volumes and Tariffs for Technological Connection for 2010-2011
• 14.14 Information on Land Plots
• 14.15 Organizational Structure of the Company

Report of the Auditor

HLB Vneshaudit

Auditor’s Opinion

Addressee: the shareholders of Joint-Stock Company of Power Industry and Electrification “Lenenergo” and other users of the accounting (financial) reports of Joint-Stock Company of Power Industry and Electrification “Lenenergo”.

Information on the audited person:
Full name: Joint-Stock Company of Power Industry and Electrification “Lenenergo”.
Abbreviated name: JSC “Lenenergo”.
Primary state registration number: 1027809170300 (certificate on state registration #2084 dated 22 January 1993 issued by the registration chamber of the Saint Petersburg Administration; certificate on entering a record into the Unified State Register of Legal Entities series 78 #004009112 dated 22 July 2002 issued by the Inspection of the Taxes and Tax Levies Ministry of the Russian Federation for the Central District of Saint Petersburg).
Seat: 196247, Saint Petersburg, Constitution Square, 1.

Information on the auditor:
Full name: HLB Vneshaudit Closed Joint Stock Company
Abbreviated name: “HLB Vneshaudit CJSC”
Primary state registration number: 1027739314448 (certificate on state registration #470.740 dated 17 February 1992, issued by the Moscow Registration Chamber; certificate on entering a record into the Unified State Register of Legal Entities series 77 #007858681 dated 4 October 2002 issued by the Interdistrict Inspection of the Taxes and Tax Levies Ministry of Russia #39 for Moscow).
Seat: 109180, Moscow, Bolshaya Yakimanka Street, 25-27/2 (tel.: 967-0495; fax: 967-0497).
Postal address: 123610, Moscow, Krasnopresnenskaya Embankment, 12, entrance 3, office 701.
Name of the self-regulatory organization of auditors, a member of which is “HLB Vneshaudit CJSC”: Noncommercial Partnership “Institute of Professional Auditors”.
Number in the Register of Auditors and Audit Organizations: main registration number of the record 10202000095.

Global in Reach, Local in Touch
“HLB Vneshaudit CJSC”
Russia, Moscow, Krasnopresnenskaya Embankment, 12, entrance 3, office 701, tel.: (495) 967-04-95, fax: (495) 967-04-97, e-mail: info@vneshaudit.ru, www.vneshaudit.ru
TIN 7706118254, settl. account 40702810538040102385 with Tver Division of Sberbank of Russia 7982, Moscow, corr. account 30101810400000000225, RCBIC 044525225.
HLB Vneshaudit is a member of HLB International, the international organization of professional accounting firms and business consultants.

We have carried out the audit of the attached accounting (financial) reports of JSC “Lenenergo” consisting of the balance sheet as at 31 December 2010, profit and loss statement, statement of changes in equity, and profit and loss statement for 2010, other appendices to the balance sheet and profit and loss statement, explanatory note.

Responsibility of the audited person for the accounting reports

The management of JSC “Lenenergo” bears the responsibility for drawing up and trustworthiness of the specified accounting (financial) reports prepared in accordance with the rules of drawing up accounting (financial) reports of the Russian Federation, for the internal audit system required to draw up the accounting (financial) reports, which do not contain material misrepresentations due to improper actions or mistakes.

Responsibility of the auditor

Our responsibility is to express our opinion in respect of trustworthiness of the accounting (financial) reports based on the audit performed by us. We have performed the audit in compliance with the federal standards of auditing activities of the Russian Federation. These standards require observance of the applicable ethical norms, as well as planning and holding of the audit so that to be sufficiently sure of the fact that the accounting (financial) reports do not contain material misrepresentations.

The audit has included holding of the auditing procedures aimed to obtain the audit proofs confirming the figures in the accounting (financial) reports and disclosure of information in them. Selection of auditing procedures is made based on our viewpoint, which relies on assessment of the risk of material misrepresentations resulted from improper actions or mistakes. The process of this risk assessment has included our examination of the internal control system, which ensures drawing up and trustworthiness of the accounting (financial) reports, for the purpose of selection of respective auditing procedures, rather than for the purpose of expressing our opinion in respect of the efficiency of the internal control system.

The audit has also included assessment of the appropriateness of the applied accounting policy and soundness of the estimated figures obtained by the management of JSC “Lenenergo”, as well as assessment of the presentation of the accounting (financial) reports as a whole.

We assume that the auditing proofs obtained in the process of the audit provide all sufficient grounds to express the opinion on the reliability of the accounting (financial) reports.

Opinion

In our opinion, the accounting (financial) reports reflect the financial position of Joint-Stock Company of Power Industry and Electrification “Lenenergo” as at 31 December 2010, its financial and economic performance and cash flow for the year 2010 reliably in all material aspects and in accordance with the rules of drawing up the accounting (financial) reporting of the Russian Federation.

General Director of “HLB Vneshaudit CJSC”
(qualification certificate of the auditor #K010089 dated 25 December 1997 in the field of general audit, number in the register of auditors and auditing organizations 20402002484)

L.M. Mitrofanov