At present JSC Lenenergo is implementing an ambitious and large-scale investment program which allows solving key strategic goals of the Company.

Parameters of large-scale investment program

The investment program of JSC Lenenergo was developed in the conditions of tariff regulation by a method of return on invested capital (RAB regulation) according to development plans of territories and technical condition of electric networks taking into account the importance of power supply facilities, forecasts on revenue from electric power transmission and proceeds under grid connection contracts. The decisions approved during development of the investment program correspond to the goals and objectives of the uniform technical policy in the distributive power network industry and to provisions of the current legislation.

The investment program of JSC Lenenergo for 2014-2019 was developed upon instructions of the Ministry of the Power Industry of Russia (Minutes # 09-1183-pr of 30.12.2013) taking into account extension of the tariff regulation period till 2019.

The draft of investment program of JSC Lenenergo was coordinated by the Commission on investments of JSC Rosseti on 17.12.2013 and is submitted for approval by the Ministry of the Power Industry of Russia.

Pursuant to the plan of measures (“Road map”) “Increase of power infrastructure availability”, the approved Resolution of the Government of the Russian Federation # 1459-R of 17.08.2013 providing introduction of the procedure of public hearings on drafts of investment programs of power network organizations, the draft of investment program for 2014–2019 received positive conclusions by results of the hearings of public expert advisory boards under Committees on tariffs of St. Petersburg and the Leningrad Region.

The investment program was coordinated by executive bodies of subjects of the Russian Federation (requirements of the Resolution of the Government of the Russian Federation # 977 of 01.12.2009):

  • St. Petersburg – # 04-10-167/14-0-1 of 06.03.2014 signed by Vice governor of St. Petersburg M.P. Mokretsov;
  • Leningrad Region – # 7-10760/12-4-2 of 05.03.2014 signed by Governor of the Leningrad Region A.Y. Drozdenko.

In April 2014 public hearings of the draft long-term investment program were held at the Open Government of the Russian Federation. The program was affirmed and recommended for approval.

Total CAPEX for 2014-2019 under the long-term program amounts to RUB 157,280 mln (with VAT), including by the regions:

  • St. Petersburg – RUB 113,077 mln (with VAT);
  • Leningrad Region – RUB 44,203 mln (with VAT).
Dynamics of key parameters of the long-term investment program
2014 2015 2016 2017 2018 2019
Capex, RUB mln (w/o VAT) 25,864 29,987 28,376 24,525 24,242 24,286
Financing, RUB mln (with VAT) 32,173 34,234 33,790 29,578 29,628 29,370
Input of fixed assets, RUB mln 28,903 30,107 30,430 26,060 25,679 25,623
Transformer capacity, MVA 1,992 2,508 2,781 2,758 1,729 1,757
Power lines, km 2,604 2,591 3,133 949 2,320 2,943
Dynamics of Capex by directions, RUB mln (w/o VAT)
Name 2014 2015 2016 2017 2018 2019
St. Petersburg 18,207 21,987 19,876 16,525 18,241 18,241
Retrofitting and renovation 8,147 9,876 11,701 13,189 12,988 15,642
New construction 9,960 12,089 8,174 3,336 5,253 2,599
Other 99 22 0 0 0 0
Leningrad Region 7,657 8,000 8,500 8,000 6,001 6,045
Retrofitting and renovation 4,437 5,476 5,871 5,765 4,202 4,734
New construction 3,181 2,524 2,629 2,235 1,799 1,311
Other 39 0 0 0 0 0
JSC Lenenergo, total 25,864 29,987 28,376 24,525 24,242 24,286
Retrofitting and renovation 12,584 15,353 17,572 18,954 17,190 20,375
New construction 13,141 14,612 10,804 5,571 7,052 3,911
Other 138 22 0 0 0 0

At implementation of the investment program of 2014–2019 the increase in fixed assets will make RUB 166.8 bn, additional transformer capacity in the volume of 7,573 MVA will be created, the length of power lines will be increased by 6,358 km.

Implementation of the investment program will influence capacity increase, drop in the breakdown rate, improvement of the quality of reliability of the power supply system functioning and will provide technological connection of consumers to electric networks.

The main direction of Capex for 2014–2019 is retrofitting and renovation of network facilities (over 65% of the total amount of investments), required due to a high share of wear of the capital equipment. The share of investments into new construction in the long-term investment program makes 35% of the total amount of investments.

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