Press Release*
The following issues are scheduled for discussion at the Government meeting on May 31, 2012
1. Progress in the operation of power generating facilities and utilities in the 2011-2012 heating season and tasks to prepare for the upcoming 2012-2013 autumn-winter period
1. Power generating facilities
The total power consumption between October 2011 and March 2012 in the UES of Russia was 559,600 gigawatt per hour (GW/h), which was 1.6% higher than in the same period during last year’s heating season.
For the first time since 2008 (after UES of Russia restructuring), the fuel reserve requirements adopted on October 1, 2011, were met by all power producers.
In the last heating season, the total fuel reserves at the stations exceeded the new requirements for the dates in question: coal by 50%; fuel oil by 40%.
On May 1, 2012, the total reserves in the heating sector accounted for (according to the aggregated new requirements for the current date): 230%, coal; 187%, fuel oil.
To prevent problems caused by failures during the heating season, experts have listed the regions with a high risk of power cuts when on maximum power loads. Experts have developed technological and organisational measures to improve the reliability of power supply.
High risk regions in the 2011-2012 heating season included the following areas (energy districts): Kuban Energy System (Sochi Energy District), Dagestan Energy System, Primorye Energy System, Sakhalin Energy System, Tyumen Energy System (Severny, Noyabrsky, Kogalym, Nefteyugansk energy districts), Irkutsk Energy System (Mamsko-Chuisky, Bodaibo energy districts).
The general outlook on failures: On the whole, in the grid sector, the number of outages on the overhead electric lines of 220-750 kW voltage types in the last heating season decreased by 2.4% with respect to the preceding winter heating period.
The winter preparation measures made it possible to reduce the number of failures by 20% at the Federal Grid Company of Unified Energy System facilities. In the current heating season, there were 203 outages of the company’s grids, while in the 2010-2011 heating season there were 249.
The generating equipment has also shown positive improvements. On average, the frequency of faults in the current heating season is 6-7% lower than in the same period last year. Thus the number of times power stations’ capacity was reduced to zero level in the current 2011-2012 heating season decreased by 7.5% with respect to the same period in the 2010-2011 heating season.. The number of failures occurring when the capacity of UES power stations was reduced by 150 MW or more decreased by 10.4%.
The total number of power cuts to consumers with capacities of 10 MW or higher decreased by 4.5% in the last heating season.
The 2011-2012 heating season saw technological faults caused by adverse weather conditions. The most significant faults were outages at the beginning of the year in the Krasnodar Territory energy system. Adverse weather conditions caused outages on twelve 110 kW lines, one 35 kW line, twenty five 6-10 kW lines, twelve 110 kW substations, six 35 kW substations, 1,436 transformer substations of 6-10 kW.
The target for introducing new generating equipment grew considerably - to 6 GW in 2011. This target is the highest in the last decade. Compared with 2010, the total new capacity grew by 1.8 times.
Major generating facilities launched in 2011: Surgut-2 Power Station, 800 MW; Heat and Power Station 26, Block No. 8, 420 MW (in Moscow); Yaiva Heat and Power Station, 422 MW (Yaiva village, Perm Territory); Sredneuralsk Heat and Power Station, 400 MW (in Sredneuralsk, Sverdlovsk Region).
In 2011, the Kalininskaya NPP launched its 4th generating unit with a 1 GW capacity, an important development for the whole UES in the Central Federal District..
Meanwhile the companies failed to fulfill their obligations in launching 1.5 GW generating facilities.
Following the 2011 results, the generating companies paid fines of 2,442 million roubles for the delay.
In 2011, generating companies laid 22,225 kilometres (117% of the plan) of power transmission lines and 27,445 MVA (108% of the plan) of the transformer facility.
As compared with 2010, the number of new transformer facilities installed increased by 32% and the number of new power transmission lines increased by 10%.
In 2012, the generating companies planned to lay 22,884 kilometres of new power transmission lines (a 3% increase) and 29,847 MVA transformer facilities (a 9% increase). They also planned to bring in generating facilities totaling 6 GW output.
In 2011, UES of Russia laid and reconstructed 132 power transmission lines of 220 kW and over 220 kW including ten 500 kW power transmission lines, eighteen 330 kW power transmission lines and 104 power transmission lines of 220 kW.
2. The utilities
In accordance with the Ministry of Regional Development’s instructions, here are the figures for the utilities operation in the 2011–2012 heating season:
Residential housing
The total area of Russian housing is 2.6 billion square metres. 2.147 billion square metres, or 99.98%, of the planned 2.148 billion square metres of housing have been prepared for the heating season.
Boiler houses
Russia has a total of 77,263 mass boiler houses. 75,835 (99.96%) of the planned 75,869 boiler houses have been made ready.
Heat supply networks
In total, Russian heat supply networks account for 161,390 kilometres. 159,450 kilometres (100%) have been made ready of the planned 159,452 kilometres.
Water supply systems
In total, Russian water supply systems account for 495,260 kilometres. 445,330 kilometres (99.99%) of the planned 445,360 have been made ready.
Fuel reserves
Planned supply:
Coal – 4.59 million tonnes. 5.63 million tonnes (122.7%) have been supplied to storehouses.
Fuel oil – 1.92 million tonnes. 2.17 million tonnes (112.7%) have been supplied to storehouses.
Funding winter preparation work
Regional budgets have planned for 186.96 billion roubles, 176.95 billion roubles (94.6%) have already been transferred.
Funds for the emergency reserve of material and technical resources
Of the planned 3.52 billion roubles, 5.09 billion roubles (144.6%) have been transferred.
Utilities debts for consumed fuel and power.
The debts accrued by Russian utilities for fuel and power previously consumed amounted to 81.66 billion roubles on November 1, 2011.
The 2011-2012 heating period began on schedule and was stable across Russia. Some areas were rebuked for reasons relating to the launching of the heating period in the republics of Buryatia, Mari El, and Yakutia (Sakha), in Transbaikal, Perm, Primorye and Khabarovsk territories, Irkutsk, Kurgan, Kaliningrad, Murmansk, Saratov, Sakhalin, Sverdlovsk, Smolensk, Tver, Tula and Chelyabinsk regions. The violations have been rectified and heating was supplied to the population and to social sector facilities.
In the period under review, vital services saw 14 faults and 4 emergency situations. The highest number of emergencies was recorded in the Volga Federal District.
The reserves of basic and reserve fuel in autumn-winter 2011-2012 were used and replenished according to the approved schedule and met the minimum reserve requirements.
In northern regions, fuel supply to remote areas was carried out as per the 2012 plans.
3. Safety Control by the Federal Service for Supervision of Environment, Technology and Nuclear Management
In the last heating season, the territorial bodies of the Federal Service for Supervision of Environment, Technology and Nuclear Management inspected over 200 power stations, 14,000 boiler houses and 1303 industrial heating stations, over 1,000 heating supply companies and 378 grids.
The inspections detected 29,000 violations of safety requirements and rules for using power equipment and grids; 2,000 physical entities and 818 legal entities were brought to responsibility.
The 2011-2012 heating season has finished in most Russian regions. Power suppliers have begun to prepare to the coming autumn-winter period.
2. On the draft federal law On the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Equatorial Guinea on the Promotion and Mutual Protection of Investments
The draft federal law was submitted by the Ministry of Foreign Affairs and the Ministry of Regional Development.
The Agreement between the Government of the Russian Federation and the Government of the Republic of Equatorial Guinea on the Promotion and Mutual Protection of Investments was signed in Moscow on June 6, 2011.
Currently the legal framework of the economic cooperation between the two countries does not completely cover all the issues concerning mutual investments and investment disputes.
Ratifying the agreement will make it possible to create the necessary legal framework in this area.
The agreement grants extremely favourable conditions to investors; investment is admitted to the territory of the country mentioned in the agreement according to the law of that country, and investors from the other contracting country are granted conditions which are no less favourable than those granted to domestic investors or investors from third countries. Each side reserves the right to use and introduce under its law exceptions from national сonditions with respect to the investments of investors from the other contracting country.
The agreement guarantees the protection of investments and investors’s income from forced confiscation by nationalization, expropriation or other measures with similar consequences, excluding cases when such measures are taken in the public interest and in accordance with the order established by the law of the contracting sides. The agreement specifies the procedures for investment protection and indemnity. The agreement provides for measures of judicial protection of investor rights and the procedure for settling investment disputes, including international arbitration. The agreement guarantees the free transfer of incomes and other payments concerned with investments after investors have met all tax liabilities.
In compliance with the federal law On International Agreements of the Russian Federation, the agreement is due for ratification.
3. On the draft federal law On the Ratification of the Agreement between the Government of the Russian Federation and the Government of the United Arab Emirates on the Promotion and Mutual Protection of Investments, and the Protocol for the Agreement between the Government of the Russian Federation and the Government of the United Arab Emirates on the Promotion and Mutual Protection of Investments
The draft federal law was submitted by the Ministry of Foreign Affairs and the Ministry of Regional Development.
The Agreement between the Government of the Russian Federation and the Government of the United Arab Emirates on the Promotion and Mutual Protection of Investments was signed in Moscow on June 28, 2010.
Currently the legal framework of the economic cooperation between the two countries does not completely cover all the issues concerning mutual investments and investment disputes.
Ratifying the Agreement will make it possible to create the necessary legal framework in this area.
The agreement grants extremely favourable conditions to investors; investment is admitted to the territory of the country mentioned in the agreement according to the law of that country, and investors from the other contracting country are granted conditions which are no less favourable than those granted to domestic investors or investors from third countries. Each side reserves the right to use and introduce under its law exceptions from national conditions with respect to the investments of investors from the other contracting country.
In compliance with the federal law On International Agreements of the Russian Federation, the agreement is due for ratification.
4. Submitting the President of the Russian Federation for subsequent introduction for ratification the Agreement between the Government of the Russian Federation and the Government of the Kingdom of Sweden on the Transit of Armaments, Military Equipment, Military Property and Personnel of the Kingdom of Sweden through the Territory of the Russian Federation in connection with the Participation of the Armed Forces of the Kingdom of Sweden in the Efforts to Stabilise and Reconstruct the Islamic Republic of Afghanistan
The draft resolution was submitted by the Ministry of Foreign Affairs.
The draft resolution proposes to approve the Agreement between the Government of the Russian Federation and the Government of the Kingdom of Sweden on the Transit of Armaments, Military Equipment, Military Property and Personnel of the Republic of Sweden through the Territory of the Russian Federation in connection with the Participation of the Armed Forces of the Kingdom of Sweden in the Efforts to Stabilise and Reconstruct the Islamic Republic of Afghanistan. The draft resolution also proposes to submit the agreement to the President of the Russian Federation for subsequent introduction to the State Duma for ratification.
The provisions of the agreement establish an international legal framework for Russia’s granting (under UN Security Council resolutions) of a transit through its air space of armaments, military equipment and military property, as well as military and civilian personnel of the Armed Forces of the Republic of Sweden sent to participate in the operations conducted by the International Security Assistance Force (ISAF) in Afghanistan.
5. Submitting to the President of the Russian Federation a proposal on signing a Protocol on Introducing Changes to the Agreement on the Procedure of Transfer of Goods for Personal Use across the Customs Boarder of the Customs Union by Individuals and on the Performance of the Customs Operations related to their Release dated June 18, 2010
The draft resolution was submitted by the Federal Customs Service of Russia.
The draft Protocol on introducing changes to the Agreement on the Procedure of Transfer of Goods for Personal Use across the Customs Boarder of the Customs Union by Individuals and on the Performance of the Customs Operations related to their Release from June 18, 2010 onwards, was prepared to provide for the implementation of state liabilities – liabilities of members of the Customs Union, following the standards of the International Convention on the Harmonized Commodity Description and Coding System, as the new version of the single commodity nomenclature of the foreign economic activity of the Customs Union and a Common Customs Tariff (CCT) of the Customs Union is coming into effect from January 1, 2012.
The draft Protocol proposes to introduce technical changes to the codes of commodities transported by individuals in accompanied and unaccompanied baggage.
6. On introducing amendments to the Statute on the Federal Taxation Service
The draft resolution was submitted by the Ministry of Finance as part of the Plan of Events for Implementing the Statutes of the Federal Law No. 383-FZ of December 3, 2011, On Introducing Amendments to Certain Legislative Acts of the Russian Federation.
Article 10, paragraph 4, subparagraph A of the aforementioned law, transfers governmental powers for establishing the procedure of interaction between registering bodies according to the location of the reorganised and subsequently created new legal bodies to the federal executive body authorised by the government.
Thus, to implement the aforesaid decision it is necessary to grant the necessary powers to the relevant federal executive body.
The draft resolution proposes to grant such powers to the Federal Taxation Service, since it is a federal executive body exercising the state registration of legal bodies.
7. Allocating to the Ministry of Industry and Trade budgetary money to cover expenses for organising and holding the International Anti-Counterfeiting Forum 2012
The forum is scheduled to be held between October 22 and 24 in Crocus Expo International Exhibition Centre in Moscow.
The Forum agenda is urgent in the light of Russia’s accession to the WTO, the formation of the Customs Union and the development of international trade links. The Forum is planned as a potential major international platform for dialogue between market players and state representatives.
The handling and organisation of the Forum has been passed over to the Ministry of Industry and Trade.
The draft directive provides for up to 76.15 million roubles to be allocated for organizing and holding the Forum.
8. Allocating to the Government of the Republic of Tyva budgetary money from the Reserve Fund of the Government of the Russian Federation for Prevention and Liquidation of Emergency Situations and the Aftermath of Natural Disasters for relief efforts following the earthquake in the Republic of Tyva on February 26, 2012
The draft directive was submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief.
More than 1,500 facilities in the local utilities sector, the social sector, the transport infrastructure, industry and agriculture were damaged in the earthquake in the Republic of Tyva on February 26, 2012.
The draft directive allocates 456.5 million roubles in 2012, including 136.05 million roubles for one-off material assistance to people and 320.45 million roubles for financial aid due to loss of basic necessities.
9. Allocating to the Government of the Republic of Tyva state housing certificates for those citizens who lost their homes as a result of the earthquake of February 26, 2012 in the Republic of Tyva
Moscow
May 30, 2012.
* Press releases by the Department of Press Service and Information are based on the materials submitted by the executive federal bodies for discussion by the Government meeting.
