2.1 ELECTRICITY TRANSMISSION

Federal Grid Company’s principal operating activity is transmitting electricity from large generators through backbone grid lines, which form the Unified National Electric Grid (UNEG), to distribution grids (which supply power to end consumers).

In accordance with Russian legislation, this is a monopoly activity and is subject to state regulation. Payments for electricity transmission services are the primary revenue source for the Company’s budget. In 2010 the share of revenue from the Company’s electricity transmission services accounted for more than 98% of the Company’s total revenues.

Federal Grid Company operates 1,652 electricity transmission lines with a total length of 121,700 km and 805 substations with a total transformer capacity of more than 311,000 MVA.

Currently, there are five agreements on parallel operations of the Russian UES with electric power systems of foreign states, with Federal Grid Company and business entities of Georgia, Mongolia, Kazakhstan, the Baltic States and the Republic of Belarus as parties of the agreements. There is also an Inter-System Agreement with Finland and Agreements on Technical Support for Parallel Operations were signed with the Ukraine, the Republic of Belarus and Azerbaijan.

In 2010 consumers of Federal Grid Company’s electricity transmission services included 150 organizations connected to the UNEG.

Consumers of the Company’s services include five types of organizations:

  • Distribution grid companies (DGCs)
  • Independent grid companies (GCs)
  • Energy sales companies (ESCs)
  • Major power-consuming enterprises connected directly to the UNEG
  • Electricity exporters

The Share of Federal Grid Company's Largest Consumers in 2010 Revenues from the UNEG-Based Electricity Transmission Services

¹ Counterparty Share, %
1 Tyumenenergo 10,4
2 Moscow United Electric Grid Company (MOESK) 7,8
3 MRSK Urals – Sverdlovenergo 5,1
4 Lenenergo 4,5
5 MRSK Siberia – Kuzbassenergo 3,6
6 Far East Distribution Company 3,2
7 Kubanenergo 3,1
8 MRSK Urals – Chelyabenergo 2,6
9 MRSK South – Rostovenergo 2,5
10 MRSK Siberia – Krasnoyarskenergo 2,4
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