The Board of Directors of IDGC of the North-West, JSC (subsidiary company of IDGC of the Russian Grids, JSC) has approved of the corrected Business Plan (including the Investment Program) for 2014.
General Director of IDGC of the North-West Alexander Letyagin highlighted the main principles thereof consisting in: taking tariff and balance decisions for 2014, the Company ceasing to discharge the functions of the guaranteeing supplier of electric energy in the Novgorod Region, fulfillment of the directive of the Government of the Russian Federation dated 23.04.2014 on reduction of administrative and managerial expenses by 15%.
The volume of funding of 2014 investment program has been increased as compared to the initial plan level by 1,406 mln. RUB, up to 5,078 mln RUB, VAT included. The program is oriented at launch of new capacities, modernization, technical refitting and reconstruction of facilities in place.
The repairs program has been corrected towards increase by 23 mln. RUB to make 1,643 mln. RUB. The increase is due to performance of emergency recovery works in the Arkhangelsk Region.
The corrected Business Plan envisages gaining net profit amounting to 831 mln. RUB, breakeven performance of electric energy transmission activities and payment of dividend amounting to 25 of net profit. In 2014, IDGC of the North-West will reduce administrative and managerial expenses by 398 mln. RUB.