Federal Law No. 522325-5 “On Security of Facilities in the Fuel and Energy Sector” introduced by the Russian President into the State Duma was passed after the third reading on July 6, 2011. IDGC Holding took an active part in work on the document under the supervision of the Ministry of Energy of the Russian Federation. The proposed law defines the principles of ensuring the security of facilities and outlines what fuel and energy sector entities should do to ensure the security of facilities. IDGC Holding submitted repeatedly for discussion at different governmental levels almost all of the measures to be taken. The Company’s management pays heightened attention to tightening the security of electricity distribution grid facilities. Specifically, the Order “On Additional Measures to Enhance the Counterterrorism Security of Electric Grid Facilities” is currently applicable to IDGC Holding’s activities, laying down how and to what extent to oppose acts of terrorism and stating the responsibility of company officers at regional level. An action plan was formulated to enhance the engineering and physical security of electricity distribution grid facilities for the period until 2016. Special attention was focused on the regions of the North Caucasian Federal District. On the basis of analysis, the most vulnerable sites were identified. These are substations, Network Control Centers, and some other facilities. IDGC Holding took stronger security measures with respect to these facilities and, on a regular basis, carries out counterterrorism exercises and drills together with Russian law enforcement agencies. The Company worked with security agencies to refine the interaction plans that apply to the threat of terrorism-related emergencies and to remedies for their consequences. At present, IDGC Holding is formulating a uniform concept for ensuring the security of electricity distribution grid facilities. When completed, the concept will make it possible to model existing and potential threats to electric grid facilities, put into practice the most effective means for protecting them, and prevent any unauthorized people from intruding into them. The enacted law will enable practical work on the security and protection of electric grid facilities to be upgraded to a qualitatively new level and the organizational and legal foundations to be laid for ensuring the stable and reliable functioning of facilities of IDGC Holding’s operating subsidiaries.
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