6.4 PRODUCTION SAFETY

Labor Protection

We aim to provide safe working conditions for our employees. The Company’s goals in this sphere include nullifying production accidents and professional illnesses, ensuring accident-free operation via the introduction of highly e? ective technologies and modern equipment, upgrading the quality of labor conditions at work sites and ensuring a high production culture.

In 2010 work in the labor protection sphere was conducted in accordance with a series of tasks, determined by resolutions of the Labor Protection Council, as well as the Company’s organizational and management documents.

The Company developed and introduced the order of organizing heightened danger work and a risk management system in the labor protection sphere to prevent and avoid injuries and professional illnesses at production, to create favorable working conditions and to ensure the high reliability and effectiveness of personnel’s work.

The Company continued work to conduct psychophysiological testing to select operative and technical personnel, as well as to create psychological release rooms for substation employees.

The Company created a Pilot Project to conduct preshift medical examinations using remote equipment to detect employees’ health issues and to adopt measures to decrease the impact of the human factor on the reliability of electric grid operation.

The Company held a review contest for the best organization of labor protection work among corporate branches.

The Company conducted semi-monthly labor protection events prior to the start of the 2010 maintenance campaign, during which Federal Grid Company performed demonstrative admissions of brigades to work at power facilities, conducted a unified labor protection day with the subject “Risk management and injury prevention during the organization of work at high voltage lines” and introduced a system to prevent the breach of labor safety rules during power facility work.

As a result of injury prevention work carried out by the Company in 2010, the number of accidents during work at high voltage lines decreased 67% year-on-year. The number of injuries for contractor organization specialists working at the UNEG objects dropped 62%.

Industrial Safety

In 2010 Federal Grid Company had 297 hazardous industrial facilities (HIFs) in operation. To secure the industrial safety of these objects, the Company undertook measures aimed at preventing HIF accidents and ensuring the readiness for localizing and liquidating the consequences of these indicated accidents, including:

  • Insuring Federal Grid Company’s liability for causing harm to life, health and/or property of other parties and the surrounding environment in the case of an HIF accident;
  • Receiving a positive appraisal from the industrial safety commission of experts on objects’ compliance with industrial safety requirements of the Federal Environmental Industrial and Nuclear Supervision Service of Russia;
  • Receiving license No.VP-00-012123(K), dated 11 November, 2010, on activities to exploit explosion-hazardous production facilities;
  • Organizing production control of the observance of industrial safety requirements at the Company’s HIFs;
  • Conducting training and the certification of personnel in the industrial safety field;

Fire Safety

During 2010 at Federal Grid Company facilities there were 12 technological breaches accompanied with fire in substation equipment.

In 2010 no accidents and incidents were registered at the Company’s HIFs. There was no damage from accidents and incidents at the Company’s HIFs.

On a semi-annual basis, Federal Grid Company personnel participated in ? re-? ghting training and exercises conducted by the Company together with divisions of fire protection services of the Russian Civil Defense Ministry. Company employees learn fire safety basics in a timely manner and undergo fire protection instruction and complete fire safety knowledge tests.

In 2010 the Company received license from the Russian Civil Defense Ministry on activities for installing, repairing and servicing fire safety means for buildings and constructions No.8-2/02172 dated 15 October, 2010.

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