« THE ACTUAL COST OF ALL GOODS, WORK AND SERVICES TOTALED 101,102 MILLION RUBLES IN 2011, AN INCREASE OF 19% FROM THE ACTUAL COSTS OF 2011 »
Cost structure by activity, mln rubles excluding VAT
|- for electricity transmission||63,178||80,488||96,906||20.4|
|- for grid connection||5,587||4,467||3,720||-16.7|
|- for other activities||617||286||476||66.4|
The actual cost of all goods, work and services totaled 101,102 million rubles in 2011, an increase of 19% from the actual costs of 2011, including by activity:
- costs for electricity transmission and distribution services totaled 96,906 million rubles (growth of 20%). The increase in costs is attributable to growth in costs beyond the Company’s control, including for the services of territorial grid organizations and depreciation;
- costs for grid connections totaled 3,720 million rubles (reduction of 17%). The decrease is attributable to the actual volumes recorded under contracts with consumers using joint feed centers;
- costs for other activities totaled 476 million rubles (growth of 66%). The increase in costs in 2011 is associated with the performance of additional work for services provided on the side.
Cost structure by region of activity in 2011, mln rubles excluding VAT
|for electricity transmission||for grid connections||for other activities|
|Total for Company||101,102||96,906||3,720||476|
In the structure of costs based on the actual data for 2011, electricity transmission costs accounted for the largest share at 95.8%, the cost of grid connection services accounted for 3.7%, and the cost of other activities accounted for 0.5%. The cost of products, work and services for the Moscow Region in 2011 made up 50.7% of the overall cost structure, while costs for Moscow accounted for 49.3%.
Structure of costs by line item
|mln rubles||share, %||mln rubles||share, %||mln rubles||share, %|
|– electricity purchased to compensate for losses||10,605||15.3||13,629||16.0||13,038||12.9|
|– services of JSC “FGCUES”||5,958||8.6||8,579||10.1||11,026||10.9|
|– services of distribution grid companies||12,455||18.0||21,812||25.6||30,067||29.7|
|– personnel costs (salaries, insurance premiums, pension funds)||9,230||13.3||10,409||12.2||13,987||13.8|
|– repair services (materials + contracting)||2,543||3.7||2,997||3.5||3,736||3.7|
|– production services + operating materials||2,703||3.9||1,815||2.1||2,690||2.7|
|– other costs||14,842||21.3||13,844||16.2||11,362||11.3|
« THE ACTUAL EFFECT FROM COST REDUCTION IN 2011 WAS 3.54%, OR 0.5 PERCENTAGE POINTS HIGHER THAN THE PLANNED TARGET »
Structure of costs by line item
Uncontrollable costs make up the largest share of costs (68.5%) based on the actual indicators for 2011. The list of uncontrollable costs includes energy purchased to compensate for losses, the services of JSC “FGC UES,” the services of distribution grid companies and depreciation. Controllable costs accounted for the remaining 31.5% of costs.
Cost reduction activities in 2011
In 2011, as part of the priority objectives set by the RF Government, the Company implemented a program to reduce controllable operating costs from the level of 2010, which was adjusted taking into account the actual consumer price index (6.1% in 2011) and the coefficient of elasticity for growth change in the standard units of basic equipment (0.75 in 2011).
The actual effect from cost reduction in 2011 was 3.54%, or 0.5 pp higher than the planned target.