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

Dynamics of Electric Power Losses

The level of electric power losses for 2010 approved in the business plan by the Board of Directors of the Company for 2010, totaled 3,570 mln kWh, or 10.72% from supply to the network. Following the results of 2010, actual electric power losses were below the indicators approved by the business plan by 4.4 mln kWh, or 0.01%.

Key measures aimed at decrease of electric power losses

JSC "Lenenergo" on the priority basis implements comprehensive measures aimed at optimizing (reducing) the level of losses.

Through the implementation of the complex of measures on optimization of losses in 2010, the total effect was 359.3 million kWh.

Following the results of implementation of measures aimed at reducing commercial losses, the effect totaled 349.8 million kWh, the reduction of technical losses through the implementation of the organizational measures amounted to 7.6 million kWh and technical measures - 1.8 million kWh. The total economic benefit of the programs totaled RUR 299.0 mln, the costs amounted to RUR 80.5 mln without taking into account the cost under the reconstruction and modernization program.

Within 2010, commercial losses of electric power of JSC "Lenenergo" were lowered by 345.8 mln kWh. The given decrease in electric power losses was reached thanks to accomplishment of the program of events for modernization of complexes of electric power metering and accomplishment of tasks under the contracts on transmission services.

• Accomplishment of the Program of perspective development of billing systems of the retail market of electric power. .The program was agreed by JSC "IDGC Holding", and approved by the Board of Directors. For 2010, over 1.8 thousand of commercial billing devices were installed and replaced, which allowed increasing the considered volume of the rendered services in power transmission on the average by 0.1%. As a result decrease in losses of electric power from decrease in a regular tool error of "out-of-date" park of settlement billing devices following the results of 2009 constituted 4.0 mln kWh.
• Replacement of branches of OTL 0.4 kV to buildings Within the reporting year there were replaced 1,691 thousand pieces of branches of OTL 0.4 kV to the buildings, executed by a naked wire with the isolated self-supporting insulating wire (SSIW). Such events were carried out together with carrying out of billing devices on facades of buildings and allow to exclude possibility non-billed current consumption, unauthorized access to chains of billing, external influence on correctness of work of the counter, short of supply by the personnel of the network company and the power sales company for removal of indications at household consumers, and etc. The analysis of the given technical events showed that at their complex accomplishment, the billed (under indications of counters, but not paid) productive supply of electric power increased in comparison with the similar period of the last year by 0.1%. By the results of accomplishment of the given event in 2010, under the estimate data, decrease in electric losses in comparison with 2009 amounted to 0.04 mln kWh.
• Technical check of the billing complexes of electric power Within 2010 there were conducted the technical (tool) checks on 50.2 thousand of billing complexes of electric power. Following the results of the given events infringements in the billing complexes allowing to reduce losses to 349.8 mln kWh were revealed and eliminated, there were revealed of non-billed (non-contractual and not-accounted) consumption of 349.8 mln kWh. Calculation of not-billed power under acts of additional accruals was performed according to the regulatory legal acts of the Russian Federation from the moment of last technical check, or on term of limitation of actions (no more than 3 years). I.e. productive supply of electric power for 2010 comprised kWh "lost" in previous years.
• Reading out of control indicators from metering complexes of electricity billing. JSC "Lenenergo" personnel for the purpose of determination of volumes of the rendered service in electric power transmission monthly conducted bypasses of household consumers and performed control reading out of indicators from the metering devices of billing installed by legal entities. In total in the area of operational activity of JSC "Lenenergo" were over 1.9 mln points of delivery to household consumers and 0.12 mln points of delivery to legal entities (including in the network of adjacent territorial network organizations). Within 2010 JSC "Lenenergo" performed events for reading out of indicators with the following periodicity: on household consumers – 1 time per quarter (over 0.6 mln points of billing per month); on legal entities – on the billing devices installed on objects of JSC "Lenenergo" – monthly (over 5.5 thousand points of billing per month), on objects of the consumers – 1 time per quarter (over 35 thousand points of billing per month). There were conducted over 7.2 mln checks of correctness of reading out and reliability of the granting information on indicators of the billing devices.