Technological Connection

In general, the dynamics of applications for technological connections to MOESK grids corresponds to the indicators of the previous year; slight growth (10% relative to 2014) is explained by the increased number of applications for the capacities up to 150 kW which was observed after the following reforms: reduction of technological connection prices by 50% for the applicants with power rating up to 150 kW from October 1 2015 (in compliance with RF Government Ordinance No. 1116 dated October 29, 2014 On Amendment of Pricing Basis for Regulated Prices (Tariffs) in Power Sector and introduction of individual payment schemes (starting from September 1, 2015 the applicants with power rating requirements from 15 to 150 kW may determine their payment schedule at their convenience and select an individual option of payment by installments up to 3 years).

Reduction of the total power rating in the contracts on technological connection by 22.2% over the reporting year is explained by the difficult situation in the national economy.

The growth of fulfilled contracts ratio by 34.5% in 2015 relative to the year 2014 was observed in line with the higher growth rates of individual residential housing construction in Moscow region and development of New Moscow territory; simplification of technological connection procedure for the applicants; dramatic change in the internal business processes of the Company associated with technological connections; active completion of earlier contracts on technological connections (acceptance of technological connections by the clients). Additionally, Moscow Region Law No. 124/2014-OZ On Characteristics of Cases where No Permit is Required for Construction in Moscow Region dated November 11, 2015 was amended in the reporting year.

Results of Technological Connection Activities

Category 2013 2014 2015 2015/2014
Total number of submitted applications for technological connection, ea. 91,610 92,735 102,031 10.0%
Total power rating for submitted applications for technological connection, MW 8,841 7,836 8,801 12.3%
Total number of executed contracts on technological connection, ea. 70,877 67,479 68,695 1.8%
Total power rating for executed contracts on technological connection, MW 4,454 3,729 2,903 -22.2%
Actual connections, ea. 34,859 57,499 77,355 34.5%
Actual connected power capacities, MW 1,531 2,523 3,107 23.1%

Commentary-interview of the Deputy Director General for Technological Connections and Service Development A. M. Pyatigor

In my opinion, the main achievement of PJSC MOESK in this field is implementation of Zero Visits program. Due to this program, the clients no longer have to physically visit the offices of PJSC MOESK to sign the paper documents related to the offer on technological connection. Clients with power rating up to 150 kW may sign the contracts with the digital signature and make payments under the contracts with the bankcard using the Client Area on the web portal of PJSC MOESK for technological connections.

Moreover, the Company completed an important project in cooperation with PJSC “Mosenergosbyt”. For example, when submitting their applications to MOESK, clients now can sign a contract on technological connection and power supply at the same time. The grid company specialists also perform acceptance of metering instruments. I would also like to point out that the clients can personally submit their applications for technological connections to MOESK in any client service center as convenient for the client, regardless of the location of the facility for which the technological connection will be arranged.

Regarding the terms of payment for technological connection, the following measures were implemented in 2015:

  • The price of technological connection was reduced by 50% for the consumers with power rating up to 150 kW starting from October 1, 2015.

  • Additional installment payment schemes were introduced for the clients using technological connection services. Today the clients can choose the most convenient payment schedule for the period of 3 years.

I would like to make a special mention of the Company achievements in the client relations management. Currently, any prospective customer can easily understand all the specific details of technological connection procedure. There are several ways to obtain necessary information: personal application to the Company office by calling the unified call center Light Line at 8(800) 700-40-70, asking questions on the Client Forum or reading information available on the specialized portal utp.moesk.ru.

Moreover, each prospective customer with power requirements above 8,900 kW will be assigned a personal manager to provide consultations on technological connections.

The Company also launched a program of document delivery by courier service for small and medium enterprises (with power rating from 15 to 150 kW) in Moscow, which will be expanded to Moscow region next year.

Due to the above work, the timeframe required for preparation of offers on technological connection contracts was reduced (from 7 days for the applicants with the power rating up to 150 kW and to 15 days for the applicants with the power rating up to 670 kW), the applicants have a greater level of control over the process of technological connections and the percentage of applications for technological connections via the interactive services increased considerably (up to 50%).

Speaking of plans for 2016 in terms of technological connections, the midterm and long-term strategy can be described generally as improvement of service quality for the applicants:

  • Further reduction of time required for preparation of offers on technological connection and performance timeframe of contracts on technological connections due to optimization of internal business processes of the Company;

  • Development of client service procedures both for personal and interactive formats in order to enhance the customer experience in the course of technological connection procedure.

Total number of submitted applications for technological connection, ea.

Total number of executed contracts on technological connection, ea.

Actual connections, ea.

 

Total power rating for submitted applications for technological connection, MW

Total power rating for executed contracts on technological connection, MW

Actual connected power capacities, MW

 

Total power rating for submitted applications, MW

Total number of submitted applications, ea.

Subjects of Applications Related with Technological Connections

Category 2013 2014 2015 2015/2014
Total number of contracts, ea., including: 70,877 67,479 68,695 1.80%
individual project 30 31 23 -25.81%
standard tariff rates 436 942 857 -9.02%
rate per unit of power 7,916 13,044 15,521 18.99%
reduced rate (550 rubles) 62,495 53,462 52,294 -2.18%

Detailed Results of Technological Connection Activities

Indicator 2013 2014 2015 2015/2014
Actual connected capacities, MW (total), including: 1,531 2,523 3,107 23.1%
industrial 93 536 46 -91.4%
agricultural 3 2 1 -50.0%
utilities and social community 247 258 176 -31.8%
individuals 391 656 850 29.6%
others 797 1,070 2,034 90.1%

The sharp change of indicators across various economic sectors occurred following the downturn of industrial production and agricultural sector due to the difficult economic situation in the country in the reporting year. At the same time, the number of technological connections for individuals became higher.

The increase in the number of applications for technological connections was observed in line with the higher growth rates of individual residential housing construction in Moscow region and development of New Moscow territory.


The increase in the number of applications for redistribution of power in the reporting year is explained by availability of information on the entities wishing to redistribute their power capacities on the Technological Connections Portal and improvement of general information availability for the applicants. After amendment of corresponding law in November 2014, the applications for restoration of earlier issued documents are classified as applications for “change of power users” rather than “others” category, which also contributed to the growth in the category “for change of power user, for redistribution, for increase of power rating, temporary technological connection”.


Number of Contracts with Breakdown to Technological Connection Price Calculation Methods

Category 2013 2014 2015 2015/2014
Total number of contracts, ea., including: 70,877 67,479 68,695 1.80%
individual project 30 31 23 -25.81%
standard tariff rates 436 942 857 -9.02%
rate per unit of power 7,916 13,044 15,521 18.99%
reduced rate (550 rubles) 62,495 53,462 52,294 -2.18%

Redistribution of power: the entities which have power-receiving equipment based on the ownership title or other legal grounds and which arranged an associated technological connection before January 1, 2009, may reduce the volume of maximum power rating allocated earlier. Any entities interested in redistribution of power capacitates may post and read information on the technological connections portal of PJSC MOESK (utp.moesk.ru) regarding the intentions of power-receiving equipment owners to redistribute their capacities to other users subject to compliance with the Russian Federation law.


The entities wishing to use these redistributed capacities can also find information on the volumes of power capacities to be redistributed in the required feeding center zone on the technological connections portal.


In 2015, PJSC MOESK received 158 applications for redistribution of maximum electric power to other entities in accordance with the information posted on the technological connections portal.


Over the reporting period, 52,294 contracts with reduced prices were executed with the eligible consumers.


In order to ensure control over the volumes of income decrease due to provision of technological connection services at reduced price for the eligible consumers in Moscow and Moscow region, the Company approved the procedure for calculation of average costs for connection of eligible consumers at the reduced rate and approved the limit for the average technological connection costs (order No. 218 dated March 4, 2015 On Organization of Control over the Costs of Technological Connection for Eligible Applicants at the Reduced Rate, order No. 1023 dated August 17, 2015 On Amendment of PJSC MOESK Order No. 218 dated March 4, 2015).


As a result, due to improved efficiency of construction in 2015, the volume of income decrease was 49.5% lower than in 2014 with the total number of executed contracts with the consumers at the reduced value being decreased by 2.3%.


In 2016, the limits on provision of technological connection services at reduced price for the eligible consumers will be further reduced.

My Report

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