Realising investment projects

Realising investment projects

Regulations for drawing up and amending the investment programme and preparing reports on its execution were approved.

Reports from the General Director on the execution of the investment programme and the schedule of construction of Olympic facilities were regularly considered at meetings of the Board of Directors.

Quality, uninterrupted and safe electricity supply

The programme for electricity supply and improving energy efficiency at the Company for 2011-2015 was approved.

The new revision of the Statement on the order of regulated procurement of goods, works and services for Kubanenergo needs was approved.

Technical development of the electricity network sector

Reports from the General Director on the readiness of Kubanenergo for the autumn winter period were examined.

Technical development of the electricity network sector

The programme for innovative development at Kubanenergo for 2011-2016 was approved.

Customer service

The Consumer Services Centralised Service System standard at the Company was approved.

The programme for long term development of electricity metering systems in Kubanenergo distribution networks was accepted.

During 2011 the Board of Directors considered 227 questions covering practically all spheres of activity at the Company. The following were among the most important decisions^*:

• the general shareholders meeting recommended taking a decision to increase the equity capital of the Company by making an additional open share offer and approved the decision on the additional share offering and the corresponding Prospectus;
• the following priority areas of activity for the Company were set:
1. developing a programme for innovation development;
2. planning the development of Kubanenergo electricity distribution network;
3. providing the level of reliability and quality of services provided set by organs of executive power of subjects of the Russian Federation in the field of state regulation of tariffs in accordance with normative legal acts;
4. introducing systems to manage construction within the most important investment projects;
5. consolidating electricity network assets;
6. carrying out obligatory electrical inspection of objects of production and economic needs and production facilities in 2011-2012;
• targets for key indicators of effectiveness for 2011 were approved;
• decisions were taken to amend the membership of the Management Board and the new organisational structure of the executive body of the Company was approved;
• a decision was taken to set up a Committee of the Board of Directors for Technological Connection and its members elected, as well as reelection of members of other committees of the Board of Directors;
• in the field of developing risk management systems a Statement on control environment and the risks of basic business processes at the Company and a Statement on insider information (in a new revision) were approved;
• reports from the General Director on questions of executing the business plan and targets for key indicators of effectiveness were examined regularly, as well as reports on expenditure of funds received from additional share offerings;
• in the field of financial management reports from the General Director on carrying out the programme of actions for financial recovery of the Company for 2010-2012 and on the execution of the schedule of actions to reduce overdue accounts receivable for electricity transmission services and regulating the corresponding differences with subscribers were examined at meetings of the Board of Directors.

Monitoring execution of decisions taken at meetings of the Board of Directors by the Company’s executive bodies is carried out quarterly: in accordance with the work plan the question of execution of decisions taken at previous meetings of the Board of Directors is raised for consideration by the Board of Directors. In addition, information from the Corporate Secretary on execution of decisions by the Board of Directors is at each meeting of the Board of Directors held as in person or in absentia format or in joint presence format heard without fail.

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   Protocols of meetings of the Board of Directors can be found at www.kubanenergo.ru — in About the company/Management/Board of Directors