An agreement has been signed between IDGC Holding (Holding MRSK) and Federal Grid Company of Unified Energy System (Federal Grid Company) by which the powers of the sole executive body of Holding MRSK has been transferred to Federal Grid Company.
According to the agreement, Federal Grid Company, acting as the managing company, assumes the powers of the sole executive body of Holding MRSK.
The transfer of executive powers will enable a unified approach to implementing technical policies and management principles for Russia’s electrical grid system and will support coordinated work on the effective development and modernization of the system through innovative and high-tech solutions. This arrangement will also allow for the implementation of unified investment, fiscal and personnel policies and help gradually to cut costs.
Establishing unified management standards will increase both the accountability and independence of subsidiaries and affiliated companies as well as establish a foundation for more efficient operations.
According to Oleg Budargin, Chairman of the Management Board of Federal Grid Company, collectively these measures will increase the reliability and economic efficiency of the Russian electricity sector as a whole, make the process of connecting customers to the network more transparent, and increase the investment attractiveness of both companies.
On 30 June 2012 the agreement was approved by the Board of Directors of Holding MRSK, and on 9 July 2012, it was approved by the Board of Directors of Federal Grid Company.