On the 2nd February in the scope of a working visit to the Kursk Region Nikolay Shvets and Evgeny Makarov, heads of JSC IDGC Holding and IDGC of the Center, respectively, met with the Region’s Governor Aleksandr Mikhailov.

At the meeting they discussed implementation of the agreement with the Administration of the Kursk region for implementation of investment programs in 2007-2011, interaction between the Region’s Administration and IDGC Holding to enhance reliability of energy supply in the Region, and details of the transition by the Kursk Region to the new RAB tariff regulation method from the 1st of January 2010.

Kurskenergo, a branch of IDGC of the Center, has switched to RAB regulation with the iRAB amount of 10.8 billion rubles. The overall amount of investments in the electric distribution grid facilities of the Region is planned to reach almost 3 billion rubles over three years of operating with the new system. The three-year regulation program of Kurskenergo is one of the largest investment programs of IDGC of the Center.

Director General of JSC IDGC Holding Nikolay Shvets underlined: “We are keen on building up efficient and mutually beneficial relationships with constituent entities of the Russian Federation, especially in terms of tariff regulation. The transition by the Kursk Region to RAB is an important step that will play a considerable role in securing more reliable energy supplies, implementation of investment programs approved for the period, and make consumers and residents of the Region confident in high quality energy supply”.

Nikolay Shvets also pointed out that RAB regulation will facilitate development of the electric distribution grid facilities in the country, enhance transparency for potential investors, and allow companies to get a clearer view of their future growth. This method encourages distribution grid companies to cut down their operating expenses and stabilizes the tariff growth for a foreseeable period.

Despite the financial and economic crisis, IDGC of the Center has still been implementing its scheduled investment programs, building new electric power facilities based on cutting edge technologies.

Yevgeny Makarov, Director General of IDGC of the Center, said: “The company maintains a uniform technical policy, with all branches applying the same standards. All new substations are fully teleautomated. We cut down our costs considerably, including by using new advanced equipment significantly less expensive in maintenance”.

In the scope of the working visit, the management of JSC IDGC Holding and IDGC of the Center met with the management of Kurskenergo and discussed issues of reliable electric power supply to consumers and outlined potential future development of the electric utility industry in the Region.

In the scope of the working visit, Director General of JSC IDGC Holding Nikolay Shvets visited the Network Control Center of Kurskenergo, the Museum of Electric Utility Industry History of the Kursk Region and met with oldsters of the Kursk utility industry.