3.1

Company`s Strategy.
Mission. Priorities

The main targets of electric power industry are set by Electric Grid Complex Development Strategy of Apr. 3, 2013, approved by the Government of Russian Federation.

Currently the industry`s strategic management is based on the Energy Strategy for the period up to 2013, approved by the Russian Federation Government Decree No. 1715-r of Nov. 13, 2009. The strategy is oriented to maximum efficient use of natural energy resources and energy potential for sustainable economy growth, increase quality of life of the Russia`s population assistance in consolidation of the Russia`s foreign economic activity.

The long-term perspective of JSC Tyumenenergo`s activity is within the Strategy framework.

Mission

  • We provide highest standards in reliability, quality and safety in electric power supply and distribution services to each consumer.
  • We guarantee availability of free growth for local economy by providing and developing efficient and safe power grid.
  • We lead public energy service system and housing and utilities infrastructure by the path of innovative development, energy performance and power saving.
  • We take care of every employee by creating worthy conditions for labour and professional growth.

Strategy of the Russian Federation Electric Grid Facilities Development

  • Strategic targets of the industry

    Long-term provision of reliable, high quality and affordable electricity supply to consumers of the Russian Federation through organization of maximally efficient grid infrastructure, which is compliant with world standards on electricity distribution tariffs; ensuring acceptable level of cost of electricity to the Russian economy and investment attractiveness of the industry through an adequate return on capital.

  • The main tasks of the industry
    1. Creation of economic incentives for efficiency of grid companies.
    2. Providing conditions for stabilization of tariffs and raising new capital for electric grid facilities to the amount sufficient for upgrading and reconstruction of electric grids, to ensure reliability of electricity supply.
  • Principles of the industry strategy
    1. Ensuring reliability of power supply to consumers; ensuring the quality of services thereof.
    2. Development of an infrastructure to support growth of the Russian economy.
    3. Competitive electricity tariffs for industrial development.
    4. Development of scientific and innovative potential of electric grid facilities, including in order driving development of related industries.
    5. Attractive for investors “return on equity”.

Strategic Priorities of JSC Tyumenenergo

  1. Increasing reliability and quality of power supply to consumers of the Tyumen power grid.
    1. Revamping and re-equipment

      Revamping and re-tooling of power grid with modern equipment and new technologies is a top priority for JSC Tyumenenergo.

      The most important activities of 2014 at the JSC Tyumenenergo facilities for reliable power supply of cities, communities and industrial consumers are:

      Substation re-equipment:

      • Replacement of outdated ОD and KZ 35–110 kV oil switches with modern SF break switches — 45 units
      • Replacement of 35–110 kV porcelain support insulators with polymer and porcelain insulators — 2251 units
      • Replacement of oil-filled bushings of power transformers with solid insulation bushings — 150 units
      • Replacement of 6–10 kV oil switches with vacuum switches — 125 units

      Power Lines:

      • Replacement of faulty poles of reinforced concrete supports of 35–110 kV overhead lines — 36 units

      • Support base reinforcement — 75 units

      • Replacement of ground wire — 36.7 km

      • Installation of spiral reinforcement sets — 4459 sets and multi-frequency vibration suppressor — 6320 units

      35–110 kV power lines

      Emergency zone, bottlenecks Corrective activities in 2015
      Degradation of poles of reinforced concrete supports Replacement of faulty poles of reinforced concrete supports of 35–110 kV overhead lines — 139 units
      Frost boil of piling foundations. Partial damage of foundation, partial decrease of supporting power in loose grounds Replacement of support foundations — 77 units

      Pinning supports — 143 units
      Ground wire wear due to multiple lightning strikes, wire swinging and vibration wear Replacement of ground wire — 15.0 km
      Vibration wear of wire Strengthening of wire/ground wire with installation of multi-frequency main switches and spiral fixtures — 7506 sets.

      Wire replacement 14.0 km

      Moreover, to remove bottlenecks, following activities for substation equipment are scheduled:

      • Replacement of 35–110 kV stick-pedestal insulators — 2181 units
      • Replacement of 35-110 kV power transformer bushings — 145 units
      • Replacement of porcelain covers for 110 kV VMT switches — 212 units
    2. Repair Program

      The repair program is fulfilled for 100.2%. 3 425 mln RUB were allocated for repair and maintenance program in 2014, including 1 879 mln RUB for repairs.

      Repair works performed:

      • 35–110 kV power transformers — 54 units;
      • 110 kV switches — 40 units;
      • 35 kV switches — 115 units;
      • 6 (10) kV switches — 109 units;
      • 35–110 kV breakers — 634 units;
      • route clearing at 110 kV overhead lines — 5333 ha, route clearing at 35 kV overhead lines — 150 ha;
      • replacement of insulators at 110 кV overhead lines — 8835 units;
      • wire replacement at 110 кV overhead lines for 19 km;
      • replacement of ground wire at 110 kV overhead lines on 36.7 km;
      • support replacement at 110 kV overhead lines — 10 units;
      • support base reinforcement — 75 units;
      • Replacement support to new bases — 93 units.

      Autumn and winter period passed in standard work mode.

      3 635 mln RUB are to be allocated for repair and maintenance program in 2015, including 1 962 mln RUB for repair.

      The Company plans to repair the following equipment in 2015:

      • 35–110 kV power transformers — 77 units;
      • 110 kV switches — 62 units;
      • 35 kV switches — 121 units;
      • 6 (10) kV switches — 80 units;
      • 35–110 kV breakers — 876 km;
      • route clearing at 110 kV overhead lines —5421 ha;
      • 35 kV overhead line routes — 302 ha;
      • insulator replacement at 110 kV overhead lines — 8385 units;
      • wire replacement at 110 kV overhead lines for 6 km;
      • ground wire replacement at 110 kV overhead lines for 15 km.;
      • support replacement at 110 V overhead lines — 37 units;
      • support base reinforcement — 143 units;
      • replacement support to new bases — 77 units.
  2. Keep leading position on Tyumen regional market of power supply services and increase in availability of power infrastructure
    1. Utility hook-up of new consumers

      PRIORITIES: increase service quality indicators for network connection, and implementation of road-map activities for Russia“s entering into the list of top 20 countries of the ‘Doing Business’ rating.

      The following activities are under-way:

      • Since January 2014, the new online Consumer“s Personal Office is in operation (making and monitoring applications).
      • Call centre functionality has been extended, with optional automatic informing and notification of applicants.
      • The 3-Visits Network Connection Standard Company Procedure has been approved.
      • Additional mobile crews began working seven days a week, checking technical requirements while simultaneously making actual network connections.
      • Work with applicants, unable to fulfil their responsibility as per hook-up contracts on time, has been arranged.

      Achieved results:

      • For the last two years, the network connection contract responsibilities growth dynamics decreased while the number of applications and contracts increased. The periods for network connection of applicants with maximum capacity up to 150 kW were decreased from 433 days in 2013 to 96 days in 2014 (standard period — 120 days)
      • Company`s GR activity resulted in legal acts, eliminating the necessity of obtaining special permits for construction of power supply network facilities of less than 20 kV class (Khanty-Mansi Autonomous Okrug — Yugra“s Government Decree No. 257-p of 11 July 2014 and Tyumen Oblast Government Decree No. 517-p of 22 November 2013).
      • Developing joint procedures with Energy Department of KhMAO on network connection of benefit applicants (“benefit applicants” means people, entities and individual entrepreneurs, hooking-up power receivers with maximum capacity up to 150 kW for voltage up to 20 kV), including small and medium business, has been continuing.
      1. Development of the “Personal Office” service as follows:
        • Service promotion in mass media, corporate web-portal and Customer Service Centres.
        • Organization of digital signing of documents via an authorization centre service.
        • Organization of payment service availability for benefit applicants from the Personal Office without any extra commissions and fees.
      2. Promotion of legal initiatives:
        • On the Federal level, settling the issue of inconsistency of land plot approval periods for construction of power supply network facilities (min. 145 days: act of selecting land plot, receiving cadastral certificate and entering into a lease agreement) with periods of realization of construction activities for distribution networks (Network Connection Rules — 120 days).
        • For introduction of fines for failure to meet network connection deadlines.
        • For introduction of fines for inconsistency between maximum capacity applied demands and actual ones.
        • For payment by eligible-for-benefits applicants for network company`s expenses for reconstruction and construction if the hook-up is denied.
    2. Development of electrical grid infrastructure

      In 2014 in collaboration with administrations of the Tyumen Oblast, KhMAO and YaNAO developed were Plans and Programs of Development of Regional Electric Power Industry as per the Russian Federal Government Resolution No. 823 dated 17 October 2009.

      Plans and Programs for Development for KhMAO and YaNAO for the period up to 2019 have been approved.

      Based on Plans and Programs the JSC Tyumenenergo Investment Program has been developed for the 2015–2019 period. Its implementation allows timely development of network infrastructure and generating capacities, satisfaction of demand for electric power and capacity, formation of stable and favourable conditions for regional development.

      In 2014, the Company developed advanced programs of long-term growth for 35kV (and higher) electric grids in the Tyumen region, the Khanty-Mansiysk Autonomous District — Yugra, and the Yamal-Nenets Autonomous district for 2015–2019 (hereinafter KRPE) and synchronized them with the development plans for the electric energy industry of these Russian Federation territorial entities. CPPPG foresees development of two variants of development of distributing mains:

      • Moderate one (taking into consideration the existing liabilities of network connection contracts);
      • Maximum one (taking into consideration perspective development plans of region and consumers).

      The selected development variant is based on feasibility study, ensuring economic efficiency of the proposed activities and easing tariff loads, and office development of overhead lines and SS sites for a recommended variant of electric grid development, with further introduction into territory planning of territories required for approval by Investment Program of JSC Tyumenenergo.

      Within the framework of the Activity Schedule (Road map) “Energy Infrastructure Availability Increase”, approved by Russian Federal Government Decree No. 1144-r of 30 June 12 for creating the Internet website the JSC Tyumenenergo is actively using modern technologies in its activities. In 2014, the activities for actualization data on main substations 35 kV and higher, owned by JSC Tyumenenergo and territorial network companies (TNCs) (that entered into information exchange agreements, including changes in main substation loads, coverage area for substations, technical characteristics of substations, etc.) were taking place on Interactive map for loading substations of JSC Tyumenenergo on the Company`s Internet portal. This map allows anyone to locate the nearest substation, JSC Tyumenenergo Office, TNCs, and spare capacities for utility hook-up.

      In 2015, JSC Tyumenenergo will proceed with its active participation in development of Complex Programs of Perspective Development of Power Grids up to 2019 in collaboration with administrations of the Tyumen Oblast, KhMAO and YaNAO.

      The Company will proceed with activities for actualization of data on main substations 35 kV and higher, belonging to JSC Tyumenenergo and TNCs, including those, entered into information exchange agreements, (including changes in main substation loads, coverage area for substations, technical characteristics of substations, etc.) on the “Interactive map for loading substations of JSC Tyumenenergo” located at the Company`s Internet portal, thus increasing customer-orientation of all the grid companies and availability of the power infrastructure as a whole.

      In 2015, the Company will proceed with development of Complex Programs of Perspective Development of Power Grids with voltage 35 kV and higher for the Tyumen Oblast, KhMAO and YaNAO for 2020. This job began in the end of 2014 and will be finished by 01 December 2015.

  3. Maintaining economic and financial stability
    1. Decrease in operating expenses

      Decrease in operating expenses

      Item Business Plan
      Actual 2012 Actual 2013 Plan 2014 Actual 2014 Plan 2015
      Prime cost, management and selling expenses, mln RUB without VAT 41 286 688 45 820 449 45 921 132 45 327 632 49 106 075
      Noncontrollable expenses, mln RUB without VAT 29 802 029 33 963 429 33 408 437 33 010 608 36 048 169
      Controllable expenses, mln RUB without VAT 11 484 660 11 857 020 12 512 695 12 317 024 13 057 906
      Basis for business improvement control program, mln RUB without VAT 11 484 660
      CPI 1,068 1,056 1,078 1,067
      Equivalent units (e.u.) 520 902 525 382 531 260 535 165 540 896
      Specific expenses at current year prices, thous. RUB/e.u. 22, 05 22, 57 23, 55 23, 02 24, 14
      Specific expenses at 2012 year prices, thous. RUB/e.u. 21, 13 20, 88 19, 99 19, 73
      Results from business improvement control program, % -4,16% -5,28% -9,33% -10, 53%
      Target value for lowering maintenance cost for electric unit at 2012-year prices, thous. RUB/e.u. 21, 61 20, 95 20, 95 19, 84
      Target value for lowering controllable costs, % 2,00% 5,00% 5,00% 10, 00%

      In accordance with the Electric Grid Complex Development Strategy of the Russian Federation and Scenario Requirements for business plans formation for subsidiaries and affiliates of JSC Rosseti for the year of 2014 for JSC Tyumenenergo the target level for lowering operating expenses — 5% in 2014. The level is inflation-adjusted for 2012 level for one maintenance cost for electric equipment unit.

      The Company exceeded target values of lowering operating expenses for implementation of Business Improvement Control Program (BICP), developed in accordance with the JSC Rossetti“s Order No. 100r of Oct. 22, 2013 ‘On calculation procedure for effect from lowering maintenance cost for electric equipment unit for subsidiaries and affiliates of JSC Rosseti for the years of 2013–2018’. Actual level of lowering operating expenses was 9.33%. The Company`s BICP included such activities as cost cuts while purchasing goods, works and services, activities for lowering costs of power and other energy resources, labour expenses cuts.

      The 2015 target level for decrease of operating expenses — 10%. The 2015 Company`s Business Plan contains the above-limit value — expected effect from implementation activities for cutting operating expenses — 10.53%.

    2. Reduction in management costs

      Management Cost Reduction Program was developed for implementation of the Guideline of the Russian federation Government No.2454p-P13 of Apr.23, 2014 for reduction of management costs in 2014 for not less than for 15% of their actual value in 2013 taking into consideration adherence to social partnership agreements and item 39 of Task Order of the Russian Federation Government No.6732p-P9 of Nov. 11, 2013. Actual decrease in JSC Tyumenenergo” s management costs was 357 mln RUB or 17% of their actual value in 2013.

      Cost advantages were achieved due to implementation of following activities:

      • wage differentiation in JSC Tyumenenergo as compared with the average Russian Federal wage differentiation;
      • optimization of management numbers and improvement of job compensation with matching achieving key figures of JSC Tyumenenergo performance;
      • cut-downs in lists and cost lowering of outsourced contractors, including performance of necessary work by the Company`s employees (consultancy and information services, legal services, advertising and marketing services, etc.).

      Scenario Requirements for business plans formation for subsidiaries and affiliates of JSC Rosseti for 2015 has not indicated the level of lowering management costs in comparison with the previous level. In the Company expenditures for 2015 the management costs remained at the level of 2014.

    3. Ensuring availability of credit financing

      Ensuring availability of credit financing for the Company is maintaining available credit. For 1 January 2014, available credit limit for JSC Tyumenenergo for the previously entered credit contracts was 9000 mln RUB. Within the framework of 2014 limit, the credits were obtained for financing the previously incurred expenditure in the sum of 3302 mln RUB.

      For 1 January 2015, available credit limit for JSC Tyumenenergo for the previously entered credit contracts was 5698 mln RUB. Drawdown period — III and IV quarters of 2015 For further ensuring availability of credit financing the Company plans organization of tendering procedures for long-term contracts with possible drawdown within the long term period.

  4. Maintaining the Company`s investment activity
    1. Maintaining investment development financing in the current situation

      Revamp of 110/10kV Kintus Substation is finished (Nefteyugansk Grid). New fixed assets commissioned — 305.994 mln RUB The Project“s results were an increase in reliability of power supply to JSC Sibnefteprovod of Nefteyugansk Trunk Pipeline Directorate, which is a first category consumer of electric power. Availability of increase of current capacity. As the consumer reports, the approximate increase of power consumption will be 4,724.451 thousand kilowatt-hour.

      Revamp of the Beloyarskaya — Peregrebnoe.110 kV overhead line's first segment is finished. New fixed assets commissioned — 309.461 mln RUB. The Project“s result is increase in reliability of power supply to consumers of Oktyabrsky and Beloyarksy regions, available is equipment operation without capacity limiting for consumers during the winter peak periods.

      Extent of financing implementation of RRP activities was over 4.3 bln RUB in 2014. Major directions of Revamping and Re-equipment Program (RRP) implemented within the frameworks of the BICP:

      • Revamping of the 10 kV Overhead Line is finished in Kugaevo, Tobolsky Region, and Tyumen Region. New fixed assets commissioned — 91.692 mln RUB, 53.644 km. of wire was replaced.
      • Vostochno-Surgutskaya 110/35/6 kV Substation Revamp is finished on the territory of Nefteyugansky Region for power supply of oil industrial facilities of RN-Yuganskneftegaz ООО, a first category electric power consumer. Re-equipment was caused by obsolescence and physical deterioration of the equipment. New fixed assets commissioned — 93.171 mln RUB.
      • Revamping of the Granichnaya 110 kV Overhead Line is finished. New fixed assets commissioned - 116.314 mln RUB. New capacity — 80 MVA.
      • Revamping of the Metelyovo 110 kV Overhead Line is finished. New fixed assets commissioned — 24.192 mln RUB. New capacity — 10 MVA.
      • The second segment of the 110kV electrical transmission line of the Tyumen combined heat and power plant TTEC-2 — Ozhogino 1.2 with grid incomer 5.7 km. The results are ensuring capacity of the TTEC-2 in maintenance diagrams and increase of reliability of power supply of utilities and communities of the City of Tyumen. Facility construction is aimed at satisfying growing consumers” demand in electric power in the City Tyumen, and unloading TTEC-1 — Granichnaya-Ozhogino 110kV Overhead Line and TTEC-1 — Voinovka-Ozhogino 110kV Overhead Line.
      • Elegaz 110 kV Substation Revamp is finished in the volume necessary for parallel operation with the power system of gas turbine electric power plant in the area of DNS-3 Station of Eastern-Surgut Deposit. New fixed assets commissioned are 130.323 mln RUB. Revamp of the substation was done in relation to connection of 35 kV to the gas turbine electric power plant through 6/35 kV substation via two lines. The result — increase in reliability of power supply of consumers in Surgutsky Region.
      • Activities in construction of distribution networks of the 0.4–10 kV power grid resulted for benefit consumers of Tyumen, Tobolsk, Ishim and Southern territorial industrial units commissioned were 99.72 km and 11.92 MVA.
      • Activities in re-equipment of distribution networks of the 0.4–10 kV power grid resulted for benefit consumers of Tyumen, Tobolsk, Ishim and Southern territorial industrial units commissioned were 35.14 km and 7.36 MVA.

      For ensuring reliability of power supply to consumers to finish in 2015 the complex revamping of the following facilities:

      • Beloyarskaya — Peregrebnoye 110 kV Overhead Line;
      • Revamping of Teplovskaya 110 kV Substation;
      • Revamping of Obskaya 110/10/10 kV Substation (indoor switchgear 10 kV);
      • Revamping of Technicheskaya 35/10 kV Substation.

      JSC NK Rosneft“s Program of Reliability Increase for Power Supply of Facilities influencing oil industrial for the period of 2015–2017, includes updating of such facilities as:

      • Tarko-Sale 110 kV Overhead Line — Severny PP 1.2 (spiral reinforcement installation);
      • Kholmogorskaya — Kraynyaya 110 kV Overhead Line, Pul-Yakha — Kraynyaya 110 kV Overhead Line (insulation replacement);
      • “Muravlenkovskaya 0151Barsukovskaya-2” 110 kV Overhead Line with a spur line to Novopureyskaya Substation, Barsukovsky Substation (wireline tester for water wells) and others.

      Financing amount for implementation of RRP activities in 2015 is planned 6.81 bln. RUB as per the Company`s BICP, approved by the Russian Federation Ministry of Energy“s Order No. 820 of Nov. 05, 2014.

      Main directions of the Revamping and Re-Equipment Program within the frameworks of the Company`s BICP:

      • Re-equipment and revamping of 35–150 kV facilities for ensuring reliable power supply of consumers (2.8 bln. RUB);
      • Utility hook-up of consumers (2.99 bln. RUB);
      • Automation of Process Control (0.94 bln. RUB);
      • Power energy metering and control devices (0.31 bln. RUB);
      • Facility safety programs (0.27 bln. RUB);
      • Revamping of distribution grids (1.2 bln. RUB).

      In addition, the Company has plans for purchasing equipment not included into construction estimates (including special equipment and vehicles).

      Finishing construction of the following facilities:

      • Nadym — Salekhard 220kV Overhead Line with Salekhard 220/110/6kV Substation. This construction will provide reliable power supply from Tyumen power system of decentralised consumers of the Salekhard-City, and organise a scheme of power distribution of the Polyarnaya thermal power plant (rated 262.5 MW) to the grid of JSC Tuymenenergo and Salekhardenergo Municipal Enterprise in the City of Salekhard.
      • Severnoye Siyanie 110 kV Substation in the City of Salekhard with 110 kV supply overhead line and 110 kV Polyarnik Substation with 110 kV overhead line in the City of Salekhard. The facilities commissioning will ensure reliable power supply to utilities, social building and population of the City of Salekhard and Salekhard Region from the Tyumen power system. It will increase technical capability of power output to hooked-up consumers, and capability of hook-up of new consumers.
      • 110 kV HV approach lines to Svyatogor Substation and 110kV overhead line to Vector Substation. Project realization will ensure reliable power supply to consumers of the Tyumen power system. The works were completed in accordance with the MoM of June 8, 2011, of joint meeting of JSC Tyumenenergo and JSC NK Rosneft on construction of grid facilities for supplying prospective loads of OOO RN-Yuganskneftegaz and for utility hook-up of OOO RN-Yuganskneftegaz power receivers.

      One of the major directions of investment activity is utility hook-up of consumers including benefit consumers.

      The Company is planning to commission 775 MVA of transformer capacity and 1319 km. of power lines.

  5. Implementation of innovative technologies and energy efficiency increase
    1. Provision of energy efficiency and energy savings

      For provision of energy efficiency of industrial processes, in 2014 an energy management system was implemented as per ISO 50001: 2011. During the year, the procedures were being finalised, the energy efficiency employees of the JSC Tyumenenergo head office and branches have been trained and a detailed energy analysis of the Company activity was performed. In December 2014, because of certification audit the certificate was received on compliance of JSC Tyumenenergo energy management system to requirements of ISO 50001: 2011.

      Within the frameworks of a continually active Program of Energy Saving and Energy Efficiency Increase (that includes activities for lowering electric power losses while transferring and distributing by grids, development of metering systems for retail markets and activities of lowering energy resources consumption for Company`s operational needs) continued will be the energy saving activities by investment and repair programs, and by drawing external financing from power service contracts” mechanisms.

    2. Innovative development
      • JSC Tyumenenergo Innovative Development Program for the period of 2014–2019 was developed and approved by the Board of Directors.
      • JSC Tyumenenergo Innovative Development Program was fulfilled for 102%..
      • All efficiency parameters of realization of Innovative Development Program for 2014 were fulfilled.
      • In 2014 an amount of 959.6 mln RUB was allocated to innovative development.

      Including:

      • Implementation of finished innovative products and technologies JSC Tyumenenergo within the frameworks of Investment program was 522.4 mln RUB.
      • Implementation of innovative activities in increase of energy efficiency was 247 mln RUB.
      • Implementation of R&D works was 134.8 mln RUB.
      • Five R&D projects were successfully finished. Three of these projects were used as templates, subsequently implemented into pilot development in the following branches: Tyumen distribution grid, Noyabrsk electric main, North electric main.
      • Realization of the Company`s Innovative Development Program for the period of 2014–2019
      • Implementation of modern innovative equipment and new technical solutions.
      • Cooperation with higher education institutes, small and medium sized businesses, R&D Centres, Design Institutes in joint projects in research, design and experimental works and process development in compliance with the principles of energy efficiency, optimization of operation costs, cuts in losses and increase of reliability and safety of power supply in 0.4–110/220 kV power grids.
  6. Human resources development
    1. Maintenance, support and development of industrial personnel

      One of the major task of JSC Tyumenenergo and a key direction of HR policy is maintenance, support and development of personnel, primarily industrial personnel. Planning was for current and prospective demand in personnel, based on common methodological principles, inclusive of:

      • standard numbers of employees;
      • plans for network development;
      • staff reshuffle dynamics;
      • Personnel qualification requirements.

      The developed list of major activities for maintenance and development of professional skills, motivation and social support of personnel was developed and implemented:

      • systematic training, retraining and advanced training;
      • increase of training efficiency by monitoring educational establishment markets and priority of rendering licensed educational services;
      • step-by-step substitution of fly-in fly-out employees for permanent employees by drawing on a pool of young professionals.

      Low level of active staff turnover was preserved — in 2014, 4.6%

      More than 700 Company`s employees were awarded, 2 persons received the state decoration, 57 persons were awarded by the Company and 236 employees received corporate awards and financial rewards for excellent work achievements, and for many years of labour and large contribution in development of power industry.

      While working with personnel reserve, priority was given to the Company`s personnel and development of their qualification requirements.

      During the year, the psycho-physiological conditions of personnel have been monitored, periodical personnel monitoring for improvement of professional activity of employees and preventative measures for mistakes connected with psycho-physiological status.

      Ensure positive dynamics of staff sufficiency for personnel directly working with the major equipment, on the average — 97%.

      Activities for personnel rejuvenation, primarily industrial personnel (workers and engineers).

      Development of personnel motivation system and social programs.

      Development of coordination system with relevant educational establishments of higher and vocational education with emphasis for profile energy educational establishments and faculties.

      Increase in employees” interest in professional development.

      Increased competitive remuneration level at the labour market.

      Ensuring that the turnover levels are less than 7%.

      Providing non-material motivation and interest in increasing labour productivity for encouraging best employees with awards.

      Improvement of work with personnel reserve Assignment to 60% of managerial positions by the company employees, drawing young specialists with relevant professional education.

      Intensification of psycho-physiological safety of operational personnel.

    2. Professional growth, including training

      For developing professional and managerial skills of Young Personnel Reserve members, the Company organised their participation in advanced training programs in leading Russian educational establishments: High Economics School — National Research University, Russian Academy of National Economy and Civil Service at the Russian President, Tyumen State University.

      One reserve member passed the tests and was enrolled in the professional training courses of the Presidential Training Program for Management Personnel.

      In 2014 as per Activity Plan for Formation and Work with Management Personnel Reserve of the Electric Grid the candidate, pool was formed (22 persons) from Company`s personnel reserve for further participation in two-stage picking contest for enrolment to personnel reserve of JSC Rosseti. Testing of candidates was performed by professional psychologists in intra-extramural form.

      The Company management pays great attention to scale-up of collaboration activities with regional establishments of higher and vocational learning that are engaged in training for electric power occupations on the territory where JSC Tyumenenergo has a presence. These are KhMAO — Yugra Surgut State University, Tyumen State University, Northern Trans-Urals State Agricultural University, Omsk State Technical University, Yugorsky State University and others.

      In 2014, JSC Tyumenenergo entered into collaboration agreements with 19 educational establishments with relevant academic departments.

      In 2014, the Company`s novelty was working of “troopers” from the student construction troop at JSC facilities The first experience of such collaboration with educational establishments showed value of such collaboration for both sides: Power Man Construction Troop (30 students of regional universities) became the best troop of the Electric Grid complex of Russia.

      Development of collaboration forms with higher learning establishments with relevant departments.

      Participation of Company`s employees in Presidential Training Program for Management Personnel in 2015.

      In 2015, the employees with best test results are going to undergo an integrated development program of management and vocational skills.

      Development of collaboration with relevant establishments of higher learning for timely and quality meeting the Company`s demands.

      Organization of Activity of Power Man Construction Troop in summer labour season in 2015.