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      1. 2.2.1 Network exploitation
      2. 2.2.2 Electricity transmission
      3. 2.2.3 Technological connection
      4. 2.2.4 Development of telecommunications and it systems
      5. 2.2.5 Investments
      6. 2.2.6 Innovations
      7. 2.2.7 Efficacy enhancement

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2.2.3 Technological connection

In 2018, the demand for connection to the networks kept growing. Total requests for technological connection, filed with the Company, totaled 39,527 (+13% YoYyear on year). In 2018, the Company concluded 31,672 contracts (+13% YoYyear on year). The amount of the executed contracts in 2018 is -9% YoYyear on year due to unreadiness of filers’ equipment. During 2018, we connected 26,312 consumers (29,032 consumers in 2017). The capacity of the concluded contracts lost 10%YoYyear on year. Connected capacitance in 2018 totaled 694 MWmegawatt (-26% YoYyear on year) due to changes in the structure of concluded contracts on connection (2018 contract on generating facilities of OAOOpen Joint-Stock Company INTER RAO – Electrogeneration with capacity of 245 MWmegawatt). With liabilities to connect generating facilities reducing, demand for technological connection to networks in residential development continues to persist.

Demand for connection (pcs)*

Demand for connection (MWmegawatt)*

* net of temporary connection

During 2018, Permenergo cancelled 1,934 contracts (+118% YoYyear on year) with total capacity of 94 MWmegawatt and worth RUBruble 232 million (net of VATvalue-added tax). Most of the contracts (90%) were cancelled by 0-15 kW filers, 88% of cancellations done by individuals. Sverdlovenergo cancelled 1,071 contracts (-7% YoYyear on year) with total capacity of 30 MWmegawatt and worth RUBruble 38 million. Most of the contracts (982 contracts) were cancelled by 0-15 kW filers, 911 contracts cancelled by individuals. Chelyabenergo cancelled 929 contracts (-19% YoYyear on year) with total capacity of 56 MWmegawatt and worth RUBruble 416 million. Most of the contracts (86%) were cancelled by 0-15 kW filers, 89% of those cancellations done by individuals.

Connection contracts cancelled during the reported period *

Connection contracts cancelled during the reported period *
contracts MWmegawatt Contract value, RUBruble million, net of VATvalue-added tax
Permenergo 682 276 156.4
Sverdlovenergo 1,190 47 95.21
Chelyabenergo 1,212 158 861.95
2016 TOTAL 3,084 480.62 1,113.55
Permenergo 886 (+30% YoYyear on year) 34 (-88%) 184.63 (+18%)
Sverdlovenergo 1,146 (-4%) 80 (+70%) 92.49 (-3%)
Chelyabenergo 1,149 (-5%) 146 (-8%) 420.58 (-51%)
2017 TOTAL 3,181 (+3%) 259.88 (-46%) 697.71 (-37%)
Permenergo 1,934 (+118% YoYyear on year) 94 (+176%) 232 (+26%)
Sverdlovenergo 1,071 (-7%) 30 (-63%) 38 (-59%)
Chelyabenergo 929 (-19%) 56 (-62%) 416 (-1%)
2018 TOTAL 3,934 (+24%) 181 (-30%) 686 (-2%)
* net of temporary connection

Connection requests are waived in the light of changes in filer’s intentions (changes in terms for construction of filer’s equipment), filer’s refusal to execute a contract due to lack of funds or intentions to construct any facilities (specifications are received just to increase the market value of a land plot) as well as expiration of specifications.

In 2018, the Company tried to improve access to the grid infrastructure, taking active steps in several directions, such as: development of interactive channels for customers, updates of the automated control system supervising connection process (launched in 2017) and regulation of internal processes of interaction between units during connection.

As a part of online customer relations evolution, in 2018 we integrated customer accounts and our automated control system supervising connection process to shorten the time for document preparation and to standardize document formats and guides in use. For prompt interaction with customers we also added an online chat functionality on the official web-site. To enforce efficient interaction between units we added a package for submittals adoption and reissue of documents into the automated control system. Implementation of electronic signature to sign documents and its automatic verification also help shorten the duration of some processes. We have also standardized connection business processes on all company levels (branch – production department – power distribution zone) and optimized internal cross-functional links. Reduction of connection terms is the focus of these measures. In 2018, with a view to discharge liabilities related to connection, the Company has also approved the roadmap(23) that affirmed key connection metrics for 2018 and related action plan. Several production departments of the Company implement our “turn-key technological connection” pilot project, when for a fee we provide a filer with the service of executing filer’s liabilities under the concluded connection contract by our technicians. The service ensures synchronization and reduction of terms for activities by the parties (gridcogrid company and filer), and improves overall quality of works.

Pursuant to the Russian Government Decree(24), local authorities have adopted regional roadmaps(25-27) on implementation of the target models improving investment climate, also covering connection to electric networks. OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals has taken an active part in development and implementation of the regional target models. By the end of the year, all activities from the target model stages, the Company is liable for, were accomplished on time.

The most important connections in 2018 are: