3.2.1 Network Exploitation and Grid Asset Consolidation

Network exploitation

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Core production assets in 2019-2021

	MU	2019	2020	2021*
Substations	pcs	33,731	34,382	39,274
Substation capacity	MVAmega voltampere thousand	31.4	31.6	34.4
Power lines (circuits)	kmkilometer	141,103	142,434	156,675

* incl. leased and no man’s networks.

Increase in core production assets during 2021 was due to leased grid facilities, implementation of investment program, compensation-free transfer of grid facilities and acceptance of no-man’s grid facilities for operation. The Company concluded contracts on the lease of networks of Ozersk Municipal District, AOJoint-Stock Company Svyatogor and AOJoint-Stock Company Uralelektromed.

Repairs in 2019-2021

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The Company’s repair and maintenance target for 2021 totaled RUBruble 4,263 million, real expenses in 2021 totaled RUBruble 4,339 million or 102%.

Repair program in 2021 in branches:

RUBruble million	Target value	Actual value	% of completion
Permenergo	1,536	1,570	102%
Sverdlovenergo	1,504	1,514	101%
Chelyabenergo	1,215	1,247	103%
IDGCInterregional Distribution Grid Company of Urals (plus HQheadquarters)	4,263	4,339	102%

The overrun was mainly due to recovery and unscheduled works. Total costs of the branches spent on outsourcing repair works totaled RUBruble 666 million or 15%; with RUBruble 3,673 million or 85% spent on in-house repair works.

Company’s repair program in 2019-2021:

Works	MU	2019 real values	2020 real values	2021 target values	2021 real values	% of completion
Power line corridor clearing	ha	8,998	9,426	9,749	10,258	105%
Groundwire replacement	kmkilometer	270	291	199	209	105%
Insulator replacement	pcs	120,777	126,840	111,272	121,167	109%
Transformer overhaul	pcs	48	35	27	28	104%
Switch overhaul	pcs	1,848	1,726	1,643	1,712	104%
Overhaul of isolating switches, short circuitors, disconnecting switches	pcs	1,524	1,394	1,643	1,660	101%
Total repair costs	RUBruble mlnmillion	3,872	4,179	4,263	4,339	102%

Works	MU	2019 real values	2020 real values	2021 target values	2021 real values	% of completion
Power line corridor clearing	ha	8,998	9,426	9,749	10,258	105%
Groundwire replacement	kmkilometer	270	291	199	209	105%
Insulator replacement	pcs	120,777	126,840	111,272	121,167	109%
Transformer overhaul	pcs	48	35	27	28	104%
Switch overhaul	pcs	1,848	1,726	1,643	1,712	104%
Overhaul of isolating switches, short circuitors, disconnecting switches	pcs	1,524	1,394	1,643	1,660	101%
Total repair costs	RUBruble mlnmillion	3,872	4,179	4,263	4,339	102%

Changes in repair volumes are attributable to natural fluctuations coming from repair periodicity. The repair program for 2022 totals RUBruble 4,631 million or +6.7%YoYyear on year, with RUBruble 3,896 million or 84% to be spent on in-house works and RUBruble 735 million or 16% to be spent on outsourcing works.

Description of incidents on network facilities in 2019-2021, incl. primary incident factors

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A decline in the number of incidents on 110kV+ networks of the Company’s branches totaled 3.7% on 2020 and 5.9% on 2019.

The diagram shows the amount of incidents and disturbances on 110+ kVkilovolt networks.

Primary factors of incidents on 110kV+ networks in 2021 are natural impacts, external impacts, aging of equipment, exploitation defects. In 2021, all branches of the Company achieved long-term reliability targets, set by the regional regulators, with significant outperformance.

Reliability indicators	Isaidi, hour		Isaifi, pcs
Reliability indicators	Approved by the REC	2021 actual value	Approved by the REC	2021 actual value
Permenergo	3.0696	0.8403	1.5123	0.8111
Chelyabenergo	2.9879	1.2502	1.9023	0.9841

Reliability indicators	I _{adiept_{, hours}}
Reliability indicators	Approved by the REC	2021 actual value
Sverdlovenergo	0.0167	0.0088

In 2021, to enforce reliable grid performance, the Company has approved a set of special-purpose programs on technical development^[16]: programs on reduction of incident rate and enhancement of equipment reliability, maintenance and repairs, service checks, upgrade (retrofitting) of grid facilities, reduction of injury risks, enhancement of fire safety, environmental safety, compliance with industrial safety requirements, equipment of high voltage units with arc fault protection, implementation of state-of-the-art security tools and special-purpose vehicles and lifting facilities. The primary expected effect from the special-purpose, repair and investment programs lies in the control of the level of incident rates and creation of conditions for achieving the reliability targets set by the regulators.

Consolidation of grid assets

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OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals (jointly with AOJoint-Stock Company EESKYekaterinburg Electric Grid Company) consolidates grid assets to shape a unified network area on the territory of the Company’s operations helping create a single point of responsibility for reliable and high-quality electricity supply and providing additional possibility to connect new consumers to the consolidated networks.

Primary means of consolidation were:

— Rental. As of 01.01.2022, the volume of rented facilities and facilities with temporary right of ownership and use totaled 71,148 c.u.conventional units;

— Uncompensated retrieval of grid facilities. We created hassle-free conditions for the transfer of grid facilities for any applicant. Applications on the transfer of grid facilities can be submitted through the corporate web site.

Consolidation of grid assets

Consolidation of grid assets	2019			2020			2021
	MVAmega voltampere	kmkilometer	c.u.conventional units	MVAmega voltampere	kmkilometer	c.u.conventional units	MVAmega voltampere	kmkilometer	c.u.conventional units
IDGCInterregional Distribution Grid Company of Urals’ total	2,992	10,839	72,589	3,267	13,003	65,856	2,621	13,639	63,567
Acquisition of grid facilities	102	576	3,719	69	228	1,058	0	0	0
Rented grid facilities	2.871	10,070	68,298	3,180	12,736	64,654	2,603	13,501	63,106
Other (permanent rights of ownership and use)	19	193	565	17	29	114	11	61	256
Other (temporary rights of ownership and use)	0	0	7	1	10	30	7	77	205
AOJoint-Stock Company EESK’s total	486	1,184	7,572	550	1,300	7,913	585	1,328	8,397
Acquisition of grid facilities	40	0	336	0	0	0	0	0	0
Rented grid facilities	434	1,184	7,150	530	1,299	7,654	538	1,328	7,837
Other (permanent rights of ownership and use)	12	0	86	20	1	259	47	0	560
Other (temporary rights of ownership and use)	0	0	0	0	0	0	0	0	0

Consolidation of grid assets	2019			2020			2021
	MVAmega voltampere	kmkilometer	c.u.conventional units	MVAmega voltampere	kmkilometer	c.u.conventional units	MVAmega voltampere	kmkilometer	c.u.conventional units
IDGCInterregional Distribution Grid Company of Urals’ total	2,992	10,839	72,589	3,267	13,003	65,856	2,621	13,639	63,567
Acquisition of grid facilities	102	576	3,719	69	228	1,058	0	0	0
Rented grid facilities	2.871	10,070	68,298	3,180	12,736	64,654	2,603	13,501	63,106
Other (permanent rights of ownership and use)	19	193	565	17	29	114	11	61	256
Other (temporary rights of ownership and use)	0	0	7	1	10	30	7	77	205
AOJoint-Stock Company EESK’s total	486	1,184	7,572	550	1,300	7,913	585	1,328	8,397
Acquisition of grid facilities	40	0	336	0	0	0	0	0	0
Rented grid facilities	434	1,184	7,150	530	1,299	7,654	538	1,328	7,837
Other (permanent rights of ownership and use)	12	0	86	20	1	259	47	0	560
Other (temporary rights of ownership and use)	0	0	0	0	0	0	0	0	0