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Risks related to Company’s operations

The table demonstrates the evaluation of risk importance and its dynamics, with due regard to existing risk passports and expertise according to the following scales:

Importance scale
Critical
Significant
Moderate
Risk importance dynamics
Increase of risk importance
Importance remains unchanged  
Decrease of risk importance

Risk type

Risk description

Measures minimizing the risk consequences

Evaluation of risk importance and its dynamics

Operating and technological risks

Operating and technological risks affecting reliable supply are primarily related to a severe depreciation of grid assets, problems of exploitation and operations of grid assets as well as incomplete investment program.

Depreciation may cause the following production risks:

  • deterioration of exploitation and economic indicators of equipment;
  • unfavorable ecological aftermath;
  • incident threat accompanied by partial or full energy short-delivery and adverse social consequences;
  • industrial injuries of the personnel and complicated incident threats.

Besides, factors of exploitation and technological risks are:

  • accidents of natural or technogenic character;
  • decrease of efficiency of Company’s asset management system (shift in priorities regarding reliable exploitation of networks, wrong ranging of facilities subject to repair);
  • shifts to forced accident-tolerant power exchanges;
  • factors related to equipment exploitation, including violations of technical norms, errors made by personnel, breaches of dispatcher schedules and discipline.
  1. Clearing and widening of 0.4-220-kVKilovolt power line route,
  2. Reconstruction of grid facilities;
  3. Increase of reserve power sources, special-purpose vehicles for emergency recovery works;
  4. Implementation of grid asset upgrade program;
  5. Upgrade of communications and telematics systems;
  6. Improvement of systems responsible for data collection and transfer, analysis of technological violations, consequence forecasts, including automated system on resource management during emergency recovery works;
  7. Improvement of the system managing emergency inventories during emergency recovery works;
  8. Increase of quantity of mobile emergency recovery teams and their equipment;
  9. Implementation of the program decreasing traumatism risks on grid facilities;
  10. Training, supervision and examining of operating personnel;
  11. Implementation of the insurance program;
  12. Implementation of the energy-saving and efficiency increase program.
  13. 100% execution of repair programs,
  14. Introduction of modern NDT methods,
  15. Hot diagnostic inspections of equipment,
  16. Optimization of structure and volume of spare parts, implementation and upgrade of stability control equipment,
  17. Tender selection of service and supply companies.
  18. After risk evaluation we generate and implement efficient measures related to reduction of operating risk influence and control over execution.
  19. The Company has a constantly improving integrated management system based on international ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 and national standards

Investment risks

Decrease of efficiency and devaluation of capexCapital Expenditures while implementing Company’s investment, innovative development and R&D programs. Increasing investment programs demand significant internal and external financing complying with RAB regulation that produces investment risks. Even if financing resources are sufficient for the investment program, there is a possibility to breach expenditure terms and delays in commissioning of facilities due to failures or untimely discharge of liabilities by contractors and suppliers. Government Act #159 dd. 27.02.2013 on alterations into the Rules on the approval of investment programs of state-owned energy companies and grid companies stipulated the exclusion of facilities, not included into regional development documentation, from the Company’s investment program. This causes a risk related to increased incomplete construction due to the exclusion of facilities, not included into regional development programs, from the investment program.

  1. Provision of easy access to grid infrastructure,
  2. Decrease of depreciation and upgrade of grid facilities,
  3. Load of commissioned capacities.
  4. Provision of compliance with regional development plans.
  5. Monitoring over execution and financing of investment programs, analysis of reasons resulted in distortion of actual parameters from target ones.
  6. Implementation of project management in investment activities, investment risk management being one of areas of expertise.
  7. Decrease of unit construction costs,
  8. High load of commissioned capacity,
  9. Generation and implementation of the system for comparative analysis of unit costs related to construction and installation works and materials,
  10. Arrangement of innovation management system,
  11. Automation of investment control system.
  12. 100% execution of repair programs,
  13. Introduction of modern NDT methods,
  14. Hot diagnostic inspections of equipment,
  15. Optimization of structure and volume of spare parts, implementation and upgrade of stability control equipment,
  16. Tender selection of service and supply companies.

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