Review of Production Activity

• 7.1 Key Operating Performance Indicators
• 7.2 Dynamics of Electric Power Losses
• 7.3 Power Saving and Enhancement of Power Efficiency
• 7.4 Services Rendered by the Company
• 7.5 Organization of Technological Connections
• 7.6 Implementation of Customer Service Standards
• 7.7 Repair Activity
• 7.8 Technical Policy

Services Rendered by the Company

Estimation of JSC "Lenenergo" performance

JSC "Lenenergo" is a regional distribution grid company and performs activity on electric power transmission and distribution on its own power network equipment.

In 2010, JSC "Lenenergo" rendered services on the principal activity - electric power transmission according to the current legislation of the Russian Federation related to rendering of paid services on a contractual basis with customers of services in electric power transmission. Consumers of services in electric power transmission of JSC "Lenenergo" in 2010 were as follows:

• sales companies – warranting suppliers in the territory of Leningrad region and St. Petersburg;
• independent sales companies subjects of the wholesale and retail markets of the electric power;
• direct consumers of electric power;
• several adjacent network companies.

Contracts on electric power transmission in 2010 were concluded according to the requirements of the current legislation of the Russian Federation to adjustable services in electric power transmission in the interests of consumers of electric power located in the territory of the region. According to conditions of the given contracts, JSC "Lenenergo" rendered services in electric power transmission by means of implementation of the complex of organizational and technologically associated actions, providing electric power transmission through technical devices of electric networks of JSC "Lenenergo".

In case of connection of consumers to networks of the adjacent network organizations (ANO) JSC "Lenenergo", according to the accepted model of "boiler" tariff regulation being "the holder of boiler" involved services of ANO for electric power delivery to the given consumers. JSC "Lenenergo" obligation fulfillment on delivery of electric power to final consumers through electric power installations of the adjacent network organizations was performed on a contractual basis with the given adjacent organizations. In 2010, ANO services appeared under 28 contracts, costs for which services were provided at regulation of tariffs for 2010. Moreover, JSC "Lenenergo" paid the services in electric power transmission over networks of JSC "FGC UES" in 2010.

The share of electric power transmission of JSC "Lenenergo" from general electricity consumption by own consumers of power sales companies performing activity in the territory of St. Petersburg and the Leningrad Region amounted to 70.4%, taking into account the consumers directly connected to power installations of generating companies.

Legislative and regulatory base

In the course of work on technological connection in the reporting period, JSC "Lenenergo" was guided by the following legislative and regulatory base:

• The Civil Code of the Russian Federation (Article 426, Articles 779-783 of the Civil Code of the Russian Federation);
• The Federal Law as of 26.03.2003 No.35-FZ "About electric power industry" (with amendments as of 14.07.2008, 25.12.2008, 23.11.2009, 09.03.2010, 27.07.2010, 28.12.2010);
• The Federal Law as of 14.04.1995 No.41-FZ "About state regulation of tariffs on electric and thermal energy in the Russian Federation" (with amendments as of 25.12.2008, 23.11.2009, 27.12.2009, 27.07.2010), which became invalid from 01.01.2011;
• The Governmental Order of the Russian Federation as of 26.2.2004 No.109 "About pricing concerning electric and thermal energy in the Russian Federation" (with amendments as of 18.06.2008, 28.06.2008, 14.02.2009, 10.03.2009, 15.06.2009, 22.06.2009, 30.07.2009, 14.09.2009, 21.12.2009, 03.3.2010, 05.4.2010, 31.05.2010, 08.09.2010, 29.09.2010);
• The Order of the Federal Tariff Service as of 21.08.2009 No.201-e/1 "About the statement of methodical instructions by determination of the size of payment for technological connection to electricity networks" (registered in the Ministry of Justice of the Russian Federation on 07.10.2009 No. 14985), the document became invalid in connection with the edit of the Order of the FTS as of 30.11.2010 No.365-e/5;
• The Order of the Federal Tariff Service as of 30.11.2010 No. 365-e/5 "About the statement of methodical instructions by determination of the size of payment for technological connection to electric networks" ("About the statement of methodical instructions by determination of the size of payment for technological connection to electric networks" (registered in the Ministry of Justice of the Russian Federation on 07.10.2009 No.14985)
• The Resolution No. 861 as of 27.12.2004 "About the approval of Rules of non-discriminatory access to services in transmission of electric power and rendering of these services, Rules of non-discriminatory access to services in operatively-dispatching management in electric power industry and rendering of these services, Rules of non-discriminatory access to services of the system operator of trading system of the wholesale market and rendering of these services, and Rules of technological connection of power accepting devices (power installations) of legal entities and individuals to electric networks" (in edit. of the Governmental Orders of the Russian Federation as of 31.08.2006 No.530, as of 21.03.2007 No.168, as of 26.07.2007, No.484, as of 14.02.2009 No.114, as of 14.02.2009 No.118, as of 21.04.2009 No.334, as of 15.06.2009 No.492, as of 02.10.2009 No.785, as of 03.03.2010 No.117, as of 15.05.2010 No.341, as of 09.06.2010 No.416, as of24.09.2010 No.759);
• The Governmental Order of the Russian Federation No.83 as of 13.02.2006 "About the approval of rules of determination and granting of specifications of connection of object of capital construction to networks of engineering technical provision and rules of connection of object of capital construction to networks of technical provision" (in edit. as of 15.05.2010 No.341, as of 27.11.2010 No.940);
• The Order of the Committee on tariffs of St. Petersburg as of 28.12.2009 No.249-r "About establishment of payment for technological connection to electric networks of JSC" Lenenergo" in the territory of St. Petersburg for 2010";
• The Order of the Committee on tariffs and price policy of Leningrad region as of 31.08.2007 No.72-r "About establishment of rates of payment for technological connection to distribution electric networks of JSC "Lenenergo" in the territory of the Leningrad Region" (with amendments as of 14.05.2008, as of 19.05.2008, as of 27.01.2009, as of 13.12.2010);
• The Governmental Order of the Russian Federation No.24 as of 21.01.2004 "About the approval of standards of disclosing of the information subjects of wholesale and retail markets of electric energy" (in edit. as of 09.08.2010 No.609);
• The Governmental Order of the Russian Federation No.977 as of 01.12.2009 "About investment programs of subjects of electric power industry" (in edit. as of 30.06.2010 No.484);
• The Governmental Order of the Russian Federation No.823 as of 17.10.2009 "About schemes and programs of perspective development of electric power industry".