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

Organization of Technological Connections

The increase in revenue on technological connection in 2010 relative to 2009 was generally associated with the growth of volumes in obligations fulfillment towards applicants.

Lost incomes of JSC "Lenenergo" for 2010-2011 were established by legislative and regulatory base over St. Petersburg and the Leningrad Region.

The Order No.22-p as of 25.02.2011 "On approval of payment rates for technological connection to electric networks of JSC "Lenenergo" of power accepting devices located in the territory of the Leningrad Region" did not establish lost incomes in the Leningrad Region for 2011.

Dynamics of demand for technological connection of power accepting devices

For 12 months 2010 the volume of capacity declared by consumers on JSC "Lenenergo" amounted to 14,686 pcs with capacity of 2,089.7 MW. The basic share of requests was accepted from applicants across the Leningrad Region and amounted to 11,162 pcs with a total capacity of 1,011.6 MW. In general, on JSC "Lenenergo" the group of applicants up to 15 KW constituted 85% from total applications at a 6% share in the total installed capacity. Following the results of 2010, there was indicated growth in the quantity of applications accepted by JSC "Lenenergo" concerning the similar period of 2009 by 22%.

The analysis of distribution over economic activities for 2010 showed that the household and social sphere, as well as housing construction took first place in installed capacity, and constituted 24% from the total installed capacity across St. Petersburg and 18% from the total installed capacity across the Leningrad Region.

Following the results of 2010, the Company concluded 11,159 contracts for a total capacity of 629.5 MVA and a cost of RUR 7,798.6 mln (net of VAT) that exceeded the indicators of the similar period of 2009 of quantity – in 2.5 times, of capacity – by 15.9 МVА (2.5%), of cost – by RUR 1,111 mln (net of VAT) (14.2%). The share of the contracts concluded across St. Petersburg, in the total amount for 12 months 2010, constituted 1,390 pcs for capacity of 247.9 МVА, and a cost of RUR 5,665.7 mln (net of VAT). Across the Leningrad Region for 2010 there were concluded 9,769 contracts for a capacity of 381.6 МVА and a cost of RUR 2,132.9 mln (net of VAT).

The quantity of the performed obligations for 2010 amounted to 4,173 contracts for the capacity of 645.3 МVА and the cost of RUR 10,163.7 mln (net of VAT). In comparison with the similar period of 2009 (3,346 pcs, 352.9 МVА, RUR 6,326.0 mln (net of VAT) there was observed quantity growth by 19.8%, capacity growth by 1.8 times, and cost growth of RUR 3,837.7 mln (net of VAT) by 1.6 times.

For the reporting period there was indicated a decrease in the share of refusals at the initiative of applicants concerning 2009, including on small and medium-sized business (capacity up to 750 kW) by 54%, on large business (capacity over 750 kW) - by 50%.

For 2010, nine contracts for a total capacity of 108 kW were terminated.