3.2

Company`s business model

Company`s business model
  • Retail Company (GP, ESK) enters into power supply contract or power purchase/sale contract with consumers.
  • When entering into power supply contract between the Retail Company (GP, ESK) and a Consumer, the Retail Company enters into Service Contract of Electric Power Transfer with JSC Tyumenenergo or any other territorial network company (TNC) depending on the hook-up location of Consumer`s power receiver.
  • When entering into power purchase/sale contract between the Retail Company (GP, ESK) and a Consumer, the Consumer enters himself into Service Contract of Electric Power Transfer with JSC Tyumenenergo or any other territorial network company (TNC) depending on the utility hook-up location of Consumer`s power receiver.
  • Retail companies and consumers, which entered into Electric Power Transfer contracts with JSC Tyumenenergo and TNC make payments for the electric power transfer services at uniform (boiler) tariffs, approved by Regional Energy Companies of Tyumen Oblast, KhMAO and YaNAO. Uniform (boiler) tariffs for electric power transfer services on the territory of all three Russian territories: South of Tyumen Oblast, KhMAO and YaNAO are the same for all the consumers, ranking the same and connected at the same voltage level.
  • JSC Tyumenenergo enters into revenue or expenses electric power transfer contracts with TNCs. Settlements between JSC Tyumenenergo and TNCs are made at individual tariffs for electric power transfer approved by Regional Energy Companies of Tyumen Oblast, KhMAO — Yugra and YaNAO. Because of individual tariffs settlements, the revenue balance is achieved for maintaining networks of all regional network organizations (TNCs with revenue excess after payments to retail companies give back the revenue excess to JSC Tyumenenergo; TNCs with insufficient revenue compensate it by individual tariff with JSC Tyumenenergo).
  • JSC Tyumenenergo enters into Service contract for electric power transfer with JSC FSK EES, by which it is provided electric power transfer on behalf of regional consumers up to the power grid of JSC Tyumenenergo.
  • JSC Tyumenenergo and TNCs enter into electric power purchase contracts with retail companies (GP, ESK) for compensating electric power process transfer losses.