Connection

During 2012 the company received 35 914 applications with overall capacity 2 531 MW. The number of concluded contracts totaled 29 584 (overall capacity – 1 406 MW). The number of executed contracts is 18 307 (overall capacity – 472 MW). Branch breakdown is as follows:

Number of submitted applicationsConcluded contractsExecuted contracts
pcsMWpcsMWpcsMW
Permenergo17,05747013,8173149,867216
Sverdlovenergo9,4789108,5393434,752168
Chelyabenergo9,3791,1517,2287503,68887
IDGC of Urals35,9142,53129,5841,40618,307472
Number and dynamics of submitted applications
YearPermenergoSverdlovenergoChelyabenergo
pcsMWpcsMWpcsMW
201011,6044886,2465754,388287
201112,3214168,5571,9117,062755
201217,0574709,4789109,3791151
Number and dynamics of concluded contracts
YearPermenergoSverdlovenergoChelyabenergo
pcsMWpcsMWpcsMW
20109,1341985,3081944,136194
201110,8415167,5944046,042301
201213,8173138,5393437,228750

Permenergo

In 2012 the branch received 17 057 applications (+38% on 2011, +47% on 2010) with overall capacity 470 MW (+13% on 2011, -4% on 2010). The number of applications from natural persons with capacity up to 15 kW grew up to 14 215 (+46% on 2011, +65% on 2010), capacity required by them grew up to 165 MW (+68% on 2011, +117% on 2010). The dynamics of the applications (without applications from natural persons) is characterized by increased number of applications (8.6% on 2011, 2 842 and 2 616 applications correspondingly). However, in comparison to 2010 there is a 5% decrease — 2 984 applications in 2010. Besides, there was a 4.2% decrease of contracted capacity on 2011 (304.9 and 318.1 MW correspondingly), still there is a 67.4% growth on 2010 (182.1 MW in 2010). It also should be noted that in 2012 there was a 9.4% increase of applications from legal entities and entrepreneurs with capacity up to 15 kW on 2011 (2 122 and 1 938 applications) and 15% decrease on 2010 (2 494 applications in 2010). The capacity demanded by such applicants in 2012 increased by 18% on 2011 and 20.2% on 2010 (20.2, 17.1 and 16.8 MW correspondingly).

The growth tendency of demanded capacity from natural persons and legal entities (up to 15 kW) remain unchanged since 2009. It can be explained by changes in legislation on connection, namely: decrease of connection fee for legal entities and entrepreneurs demanding capacity up to 15 kW inclusive down to RUR 550. In 2009 such applicants tried to decrease demanded capacity in their applications to cut connection expenses but thereafter they began to demand more capacity within 15 kW. There is also a positive dynamics in the growing number of applications demanding over 750 kW (43 in 2010, 67 in 2011, 76 in 2012). This shows that business activity regarding construction and reconstruction in the Perm region begins to revive.

Sverdlovenergo:

In 2012 the branch received 9 478 applications (+11% on 2011, +52% on 2010) with overall capacity 910 MW (-110% on 2011, +58% on 2010). A considerable growth of capacity in received applications in 2011 was due to 6 applications demanding 674 MW (connection of generation facilities). The number of applications from natural persons demanding capacity up to 15 kW grew up to 7 270 applications (+12% on 2011, +46% on 2010), capacity demanded by them grew up to 91.3 MW (+24% on 2011, +76% on 2010). It also should be noted that in 2012 there was an increase of applications submitted by legal entities demanding capacity up to 15 kW by 11% on 2011 and 95% on 2010 (1 609, 1 452 and 824 applications correspondingly). Increased number of applications from such applicants was mainly due to the priority given to the small enterprise development: decrease of connection fee for legal entities and entrepreneurs demanding capacity up to 15 kW inclusive (connection fee under connection contract totals RUR 550, incl. VAT). Capacity demanded by such applicants in 2012 increased by 92% on 2011 and by 19% on 2010 (14, 11.8 and 7.3 MW correspondingly). In 2009 such applicants tried to decrease demanded capacity in their applications to cut connection expenses but in 2011 and 2012 they began to demand more capacity.

Positive dynamics of submitted applications demonstrates that business is stepping up

Chelyabenergo:

In 2012 the branch received 9 379 applications (+33% on 2011 and +114% on 2010) with overall capacity 1 151 MW (+52% on 2011 and +401% on 2010). The number of applications submitted by natural persons demanding capacity up to 15 kW grew up to 7 179 applications (+56% on 2011 and +168% on 2010) and capacity demanded by them grew up to 87.5 MW (+76.7% on 2011 and +210% on 2010). The dynamics of submitted applications (excluding applications from natural persons) is characterized by a 10% decrease of submitted applications in comparison to 2011. However, there is a 29% increase of submitted applications in comparison to 2010 (2 199, 2449 and 1 706 applications correspondingly). Besides, demanded capacity increased by 16% on 2011 and by 215% on 2010 (816.1 MW in 2012, 706.3 MW in 2011, 259 MW in 2010).

This growth tendency can be explained by reviving economy, including increased number of large applicants (with capacity over 670 kW on voltage level of 6-110 kV). Decreased number of applicants (excluding natural persons) in comparison to 2011 can be explained by decreased number of applications from legal entities and entrepreneurs demanding up to 15 kW. It also should be noted that capacity demanded by such applicants in 2012 decreased by 19.6% on 2011 and increased by 27.8% on 2010 (11.5 MW in 2012, 14.3 MW in 2011, 9.0 MW in 2010). This can be explained by the stability of application submission that succeeded a sharp growth in 2011. Legislation on connection that decreased connection fee for such applicants down to RUR 550 (incl. VAT) undergoes no changes and this makes entrepreneurs plan their operation more steadily. Since 2009 these applicants began to demand more capacity. Average value of demanded capacity grew by 3.2% on 2011 and by 9.2% on 2010 (9.5 kW in 2012, 9.2 kW in 2011, 8.7 kW in 2010).

Permenergo:

In 2012 the branch concluded 13 817 contracts (+27% on 2011, +34% on 2010) with overall capacity 313.6 MW (-40% on 2011, +58% on 2010). The growth was due to a considerable increase of the number of contracts with applicants demanding capacity up to 15 kW. In 2012 we concluded 13 364 contracts (+28% on 2011, +50% on 2010). The number of contracts demanding over 750 kW grew up to 36 (14 in 2011, 23 in 2010). Decreased capacity and increased number of contracts were due to the conclusion of a contract with TGK-9, OAO (Novobereznikovskaya CHPP) in 2011 on 230 MW and 165 MW in 2010 (CHPP-9 generators).

Sverdlovenergo:

In 2012 the branch concluded 8 539 contracts (+12% on 2011 and +61% on 2010) with overall capacity 342.6 MW (-15% on 2011, +76% on 2010).

Chelyabenergo:

In 2012 the branch concluded 7 228 contracts (+19.6% on 2011 and +74.7% on 2010) with overall capacity 750.1 MW (+67.1% on 2011, +159.2% on 2010). Increased number of contracts is due to increased number of applications.

Volume and dynamics of executed contracts
YearPermenergoSverdlovenergoChelyabenergo
pcsMWpcsMWpcsMW
20106,9191012,3651312,24546
20118,9092364,8051672,62374
20129,8672164,7521683,68887

Permenergo:

In 2012 the branch connected 9 867 applicants (+10.7% on 2011, +42.6% on 2010) with overall capacity 216.7 MW (-8.2% on 2011, +113.5% on 2010). In 2011 we connected 124 MW from CHPP-6. The increased number of connections in 2012 was due to connection of applicants demanding capacity up to 15 kW - 9578 contracts (+10% on 2011, +42.3% on 2010).

Sverdlovenergo:

In 2012 the branch executed 4 752 contracts (-1% on 2011 and +100% on 2010) with overall capacity 168.3 MW (+1% on 2011, +28% on 2010).

Chelyabenergo:

In 2012 the branch executed 3 688 contracts (+40.6% on 2011 and +64.3% on 2010) with overall capacity 87.5 MW (+19.0% on 2011 and +88.9% on 2010).

Number and dynamics of cancelled contracts
Cancelled contracts (on applicant’s initiative)
pcsMWReturned, RUR mln.Contract value, RUR mln.
Permenergo3412049,7239,3
Sverdlovenergo1,1302911,8102,3
Chelyabenergo1,394656,252,5
IDGC of Urals2,86511467.7394.1

In Permenergo applicants cancel contracts due to changes of plans, delayed construction of equipment or financial problems. In 2012 applicants cancelled 341 contracts demanding 19.8 MW of capacity with the value of RUR 239.3 mln. (excl. VAT). The number of cancelled contracts (341 in 2012, 263 in 2011, 248 in 2010) is increased mainly due to consumers demanding up to 15 kW. This is caused by inability to construct grid facilities by applicants during 6 months (contract duration). The price of cancelled contracts (RUR 239.3 mln, excl. VAT, in 2012, RUR 284.3 mln., excl. VAT, in 2011 and RUR 947.8 mln., excl. VAT in 2010) is mainly decreased by applicants demanding over 750 kW. Large developers gradually revive, thus decreasing the number of applications on construction cancellation.

Permenergo has mounted the Urals’ first new-generation transmission pole

Under the project related to additional power output from Perm CHPP-9 Permenergo specialists have mounted first new-generation transmission pole for a 110 kV line CHPP-9-Zaostrovka.

A pole produced by Muromenergomash is a 40 meter-high tubular structure weighting approx. 40 tons. It is mounted on a piled foundation grill. The volume of concrete in the foundation is approx. 60 cubic meters. The most difficult operation during the assemblage is to mount a pole flange on foundations screws. There are 128 metal pins and screws between the flange and foundation. The precise work is done with the help of special interceptors and guides.

At present we mounted 10 transmission poles with insulators and wires. In a while we shall mount 18 poles between substations Andronovskaya and Kondratovo. On the whole, we plan to mount 57 4-circuit metal transmission poles to decrease expenses, reduce the term for construction and increase reliability and operating life of new lines.

Elena Dmitrieva, Federal Press information agency

In Sverdlovenergo the main reasons for cancellation is refusal to connect (926 contracts), changes of conditions stipulated by the application (121 contracts), financial problems (30 contracts), and change of owners (53 contracts). Generally, 1 130 contracts were cancelled, including 1 040 contracts with capacity up to 15 kW (872 contracts with natural persons), 59 contracts with capacity 15-100 kW, 26 contracts with capacity 100-670 kW, 5 contracts with capacity over 670 kW.

In Chelyabenergo applicants cancelled 1 394 contracts. Natural persons (capacity up to 15 kW) cancelled 1 023 contracts due to refusal to install electric boilers or refusal to construct a detached house. Besides, 371 contracts with small and medium enterprises as well as developers were cancelled due to refusal to incorporate or expand enterprises.

Connection revenues in 2010-2012, RUR mln.
PermenergoSverdlovenergoChelyabenergoIDGC of Urals
20105498233131,685
20118122133031,328
20127561733401,268

In 2012 Permenergo’s revenue gains from connection totaled RUR 755.5 mln., excl. VAT (–7% on 2011, +38.9% on 2011). This reduction was due to the execution of a RUR 255 mln. contract on connection of CHPP-6 generating facilities in 2011. Sverdlovenergo’s revenues from connection in 2012 totaled RUR 173.22 mln., excl. VAT (-19% on 2011, -79% on 2010). This considerable decrease, in comparison to 2010, was due to the execution of a RUR 600 mln. contract with Sukholozhsktsement in 2010. In 2012 Chelyabenergo’s revenues from connection totaled RUR 339.63 mln., excl. VAT (+12.2% on 2011, +8.5% on 2010). This increase was due to the execution of contracts with South Urals Corporation of residential construction and mortgage (RUR 51.33 mln., excl. VAT), SK Chelyabinskgrazhdanstroy (RUR 35.56 mln., excl. VAT), Tander (RUR 21.43 mln., excl. VAT), Regionsnabsbyt (RUR 11.89 mln., excl. VAT), Arkhstroy-Service (RUR 10.33 mln., excl. VAT).

Revenues forecast for 2013-2017, RUR mln.
PermenergoSverdlovenergoChelyabenergoIDGC of Urals
20139443122901,546
20146864382981,422
20154922753071,074
20166172663161,200
20174902773261,093

Permenergo:

According to FST Decree #209-e/1 dd. 11.09.2012 on the approval of guidelines on the determination of a connection fee the Perm regulator approved Decree #77-tp dd. 27.12.2012 on the determination of a connection fee for Permenergo for 2013. The fee calculation has undergone changes, there appeared direct correlation with volume of required construction in every case, especially in case of standardized rates. The price of a contract will decrease, even if demanded capacity increases, due to aspiration of applicants to construct more at their end. This will influence revenues reduction since 2014, therefore, we forecast revenues at RUR 500 mln. per annum for 5 years (excl. individual tariff). Individual projects will bring RUR 410 mln. in 2013, RUR 245 mln. in 2014, RUR 104 mln. in 2015, RUR 9 mln in 2016 (the information is taken from the concluded contracts).

Sverdlovenergo:

We forecast connection revenues for 2013-2017 basing on existing contracts as well as forecast increased connected capacity, average connection tariff (including CPI) and applications for connection from PDC facilities.

Chelyabenergo:

Gradual revenue growth in 2013-2017 can be explained by gradual growth of capacity demanded by applicants.