The new model of tariff regulation resulted in very vivid discussion of the Strategy committee under the Board of directors.

The agenda of the Board of Directors of IDGC of North-West which will take place on September 14 in the form of postal voting will conclude the issue “Determination of the priority directions of activity: on transition to regulation of tariff for services connected with the transition by means of “Regulated asset base”.

Recently, in Moscow they carried out the ordinary meeting of the Board of Directors Strategy Development Committee of IDGC of North-West in new structure. The issues of transition to the new model of tariff regulation based on RAB principle were resulted in the vivid discussion of the Committee and the persons taking the floor at the meeting even before the beginning of the session.

According to the members of the Committee, RAB is the model of the growing and stable, but not the stagnated economy. That’s why during the transition to RAB in current conditions it is necessary to preliminarily account all the possible variants of national and regional economy development so that we would acquire the real RAB instead of possible pseudo-RAB.

The Committee meeting began with the discussion of the report on implementation of the business-plan of the Company by the results of 1 half of 2009. The speaker, Olga Makarova, Economy and Finance Deputy General Director draw the attention of the Committee members to the conditions of the forming of the active business plan of the company.

According to her, in conditions of the considerable decrease of power consumption the decrease of profit from transition of the electric power was necessary to eliminate by the decrease for costs in the amount of more than RUR 1 billion. It was possible for the company in conditions of the financial and economic crisis to make the loss-free business plan.

In its turn the implementation of the anti-crisis management of the finances allowed the financial stability of the company at the back ground of debts of the consumers. By the results of 1 half year the net profit plans, amounts of the implemented repairs and investment program were fully implemented by the company. It was mentioned by Aslan Chkhoyev in his report.

The topical is the issue of the labor safety at the electric power enterprises. The speaker is Viktor Shchelkonogov, HR and Organizational Development Deputy General Director, during the discussion of the issue on approval of the Program directed to the decrease of risks of power traumatism in IDGC of North-West for 2009-2010 years fully described all the activities carried out in this direction.

At the end of the meeting the members of the committee returned to the issue of RAB implementation within the framework of the determined agenda.   Olga Makarova, Economy and Finances Deputy General commented on the presented variants of calculation. The members of the meeting agreed that for the objective assessment of the development of the company it is necessary to determine the scenario conditions developed by the ministries, including the indices-deflators for 2010 for their compatibility with RAB model.

According to the results of the issue discussion the Committee recommended to the Board of Directors to entrust the General Director of IDGC of North-West with all the necessary measures for transition to regulation of the tariffs for services of electric power transition by method of the Regulated asset base (RAB) since January 1, 2010.