Accounts receivable for electricity transmission services

History

As of December 31, 2011, accounts receivable for electricity transmission services totaled 9,530 million rubles with current debt accounting for 8,551 million rubles, or 90%, and overdue debt making up 979 million rubles, or 10%. Receivables turnover totaled 28 days. The ratio of overdue debt to annual revenue for electricity transmission services totaled 0.91%.

As of December 31, 2011, activities were being conducted to reduce the total overdue and disputed debt, including the consideration of the Company’s claims for the recovery of 688 million rubles in overdue debt in various court instances and 291 million rubles mainly comprised of recently accrued debt which the Company is handling in the extrajudicial (claim) procedure.

Structure of accounts
receivable, mln rubles

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As of December 31, 2011, the debt of guaranteed suppliers accounted for 90% of accounts receivable, the debt of energy retail companies for 9% and the debt of direct consumers for 1%.

The large share of debt among guaranteed suppliers in the structure of consumers is attributable to the fact that guaranteed suppliers account for 96% of the Company’s total revenue.

As of December 31, 2011, current debt accounted for 90% of account receivable (less than one month, final payment for December), while overdue and disputed debt accounted for the remaining 10%.

The value of electricity acquired to compensate for losses in the Company’s grids in 2011 totaled 13,038 million rubles excluding VAT, which is 11.39% below the target.

Analysis of the deviation in actual expenses on the acquisition of electricity to compensate for losses compared to the business plan

The main reasons for the decline in expenses on the acquisition of electricity to compensate for losses are:

  • a 5.94% reduction (549 million kWh) in the actual volume of electricity acquired to compensate for losses compared to the planned volume. In value terms, the savings from the reduction in losses totaled 925 million rubles;
  • a 5.53% reduction (9 kopecks) in the unregulated electricity price compared to the planned level. In value terms, the savings from the reduction in prices totaled 817 million rubles.

Value of electricity transmission services by JSC “FGC UES ”

Name Included
in ТBSD,
Business
plan,
Actual for
2011,
Deviation in actual for 2011
  mln rubles
excluding VAT
mln rubles
excluding VAT
mln rubles
excluding VAT
from TBSD from BP
        mln rubles % mln rubles %
Moscow 3,915 2,981 3,040 -875 -22.36 58 1.96
Moscow Region 8,351 8,018 7,986 -365 -4.37 -32 -0.40
Total for Company 12,266 10,999 11,026 -1,241 -10.11 26 0.24

The value of electricity transmission services by JSC “FGC UES” totaled 11,026 million rubles in 2011 excluding VAT compared to the plan of 10,999 million rubles excluding VAT. Actual expenses were 0.24% higher than the target and 10.11% lower than those recorded in the tariff.

Actual expenses were 1,241 million rubles lower than those adopted in the tariff due to a reduction in the overall cost of services by JSC “FGC UES” by the cost of the actual load losses paid for on the wholesale energy (capacity) market in the amount of 1,757 million rubles, which were not accounted for in the TBSD.

In addition, the cost of services paid for at the electricity loss payment rate was higher by 517 million rubles.

The cost of services by distribution grid companies for electricity transmission totaled 30,067 million rubles in 2011 excluding VAT compared to the plan of 30,744 million rubles excluding VAT. Actual expenses were 2.3% lower than the target and 4.9% lower than those recorded in the tariff.