JSC Lenenergo is one of the largest distribution grid companies in the Northwest of Russia. Two main objectives of the Company are reliable and high-quality power supply of consumers of St. Petersburg and the Leningrad Region and prompt non-discriminatory technological connection to networks. The Company’s priorities are attraction of large-scale investments into construction and reconstruction of power grid facilities to provide both reliable power supply and advanced development of the energy sector in relation to economic growth.
Last year JSC Lenenergo proceeded with active development and transformation aimed primarily at improving efficiency, cardinal renovation of production facilities, development of customer services and increase of its business reputation. I believe that results of 2013 indicate that the Company is on the right track, and all the decisions were justified.
I would like to note that today JSC Lenenergo not only successfully parsed with the cargo of serious system problems which have been accumulated up to 2010, but also implements global innovation projects in the sphere of improving the reliability of power supply, and development of the system of technological connection to networks. Thus many initiatives of the Company were supported at the Federal level.
Over the past year the staff of JSC Lenenergo repeatedly received awards from regional and Federal authorities. in 2013 work of power engineers was marked off by the governors of St. Petersburg and the Leningrad Region, Ministry of the Power Industry and management of JSC Rosseti.
In the reporting year the Company continued its movement in the framework of the set of priority objectives. The efforts of the personnel of JSC Lenenergo ensured uninterrupted supply of electricity to consumers, increasing the capacity and reconstruction of electric networks of St. Petersburg and the Leningrad Region. Comprehensive work aimed at improvement of financial and business indicators, increase of investment appeal and transparency of activity of the Company was carried out. a significant attention of the Company was paid to the issues of innovation development and energy efficiency as well as reliability and quality of services.
Priority direction of activity is work on increasing the availability of grid infrastructure. The initiatives implemented by Lenenergo in the past are used today by other regional grid companies. Last year the Company continued its work on improvement of business processes of technological connection.
At the end of 2013 Lenenergo reached a new level of rendering of services in connection to networks having launched the project «8-800» in the Leningrad Region which is a technological connection without visits to the grid company. This is an unprecedented step in simplifying access to energy resources.
An important role in realization of the interests of shareholders, including the strategic issues faced by the Company in 2013 was carried out by the Board of Directors, which defines the priority areas of development and sets the Company’s guidelines for the long term. in 2013 interests of shareholders in the Board of Directors were represented by officials of such companies as JSC Rosseti and JSC FGC UES, and representatives of the Ministry of Power Industry of the Russian Federation, Government of St. Petersburg.
In 2013 the Board of Directors of JSC Lenenergo regularly considered strategic and production and business issues of the Company’s activity. Special attention was paid to approval and control over implementation of key documents for the Company, such as the business plan, including the investment program. Reports of the Director General on the basic directions of activity of the Company were considered regularly.
In 2013 36 meetings of the Company’s Board of Directors were held, of them in absentia – 32, in correspondence – 4; 241 issues were considered at these meetings.
Priority directions of the Company’s activity on the near-term outlook are ensuring of reliability and quality of rendered services pursuant to regulatory legal acts, further reduction of the average duration of technological violations liquidation, implementation of programs to expand the slopes of overhead power lines. The Company has to pay considerable attention to such issues as increase in the market share of JSC Lenenergo in the region at the expense of decrease in RGR of third-party network companies and consolidation of grid assets, decrease in volumes of non-contractual electricity consumption by registration of contractual relations of the consumer under contracts of technological connection and power supply.
In its relations with shareholders the Company, as before, is committed to adhere to the fundamental principles of corporate governance – accountability, justice, transparency and responsibility. I feel confident that in the long term professionalism of employees and support of shareholders of JSC Lenenergo will continue successfully to ensure reliable electricity supply to consumers in St. Petersburg and the Leningrad Region, modernization of electric grid facilities, increase of investment appeal and transparency on the basis of the growth of income and improvement of corporate governance.
In order to ensure break-even activity and maximize profit of the Company development and implementation of measures focused on cutting and growth of income is of particular relevance for JSC Lenenergo.
The Company together with its principal shareholders will actively proceed with seeking ways to attract non-tariff sources of financing. Improving the efficiency of financial and business performance of the enterprise will be carried out including due to more rational use of resources. The issues of managing the Company’s business reputation, improving its social responsibility, transparency and integrated communications will be deduced in a special priority.
On behalf of the Board of Directors of JSC Lenenergo I express sincere gratitude to the members of the Board of Directors and the management for coordinated and effective work aimed at comprehensive protection of interests of the Company. I give the words of special appreciation to the administrations of St. Petersburg and the Leningrad Region for constructive cooperation and systematic approach to development of grid infrastructure in the interests of high-quality and reliable power supply of consumers. I sincerely thank all employees of the Company which professional and productive work contributes to stability and reliability of the electricity grid infrastructure of JSC Lenenergo.