In February 2011 during the compliance audit by the certification organ SGS Vostok Limited (part of the SGS) confirmed the compliance of the Company management system with the requirements of international standards in the field of management quality, health and safety and environmental management.

In accordance with the Statements of the integrated management system policy and the approved aims a programme for management quality was developed for 2011.

The Company carried out quarterly monitoring of the set indicators of the effectiveness of processes and where necessary carried out corrective and preventive measures to achieve the planned targets.

In the first quarter of the accounting year analysis was made of the management system and in line with the results decisions were taken on planning and improving the Company’s operations.

In 2011 the programme for internal auditing was fully completed, making it possible to identify problematic areas in business processes, environmental management systems, industrial safety and health and safety. A cycle of internal audits made it possible not only to ascertain non-compliances in the operations of the Company but also to prevent them in a time manner. Technical experts in protection relay and emergency control systems, colleagues from specialised services in the executive apparatus and colleagues from the branch management appartus were involved in carrying out the internal audits which made it possible to make a better quality assessment of business processes, compliance with legislation and internal normative requirements in the field of management processes, industrial safety, health and safety and environmental protection, and their execution.

The Company carries out constant monitoring of the influence of its activities on the environment.

In February 2012 the Company carried out a recertification audit and in light of the results was recommended it should receive compliance certificates from the Swiss accrediting body.

The recertification audit was carried out within the executive apparatus and at four branches, Labinskie, Armavirskie, Tikhoretskie and Yst-Labinskie electricity networks. According to the results of the audit the body concluded that the management system at the Company meets the requirements of international standards, functions effectively, is planned and able to achieve the targets set.

Promising areas of work on the improved management system and services on offer in electricity transmission and technological connection for 2012 were drawn up in the form of the following targets in the field of quality:

1. Ensuring quality and uninterrupted work of electricity production facilities in the sector;
2. Timely realisation of basic plans for construction and renovation of Olympic facilities;
3. Improving levels of customer satisfaction by opening 37 reception points in Kubanenergo branches;
4. Opening a hot line for queries about electricity supply;
5. Carrying out continuous staff training (including in the fields of quality, environment, health and safety) to maintain the levels of professional competency of Company employees;
6. Improving quality and safety of electricity supplies to domestic customers by replacing bare wire branch lines from 0.38 kilovolt main lines with self supporting insulated wire;
7. Improving operating effectiveness within the framework of introducing an integrated system for management of plant assets.