Transcript Реформирование российской электроэнерг

Presentation by Anatoly Chubais,
Chief Executive Officer, RAO UES of Russia
25 June 2002
Moscow
Three year results and
medium-term program of the Holding development
1998 - 2001
2002 - 2004
«3 + 3»
The new managers team
The program of achieving the
has worked out and
strategy goal of increase in
implemented the
energy business efficiency and
antirecessionary program of
profitability, for Holding, and
Holding development
its aggregate value growth
within Russian power sector
reform
Year 2001: The antirecessionary management period is finished, the switch to
regular working regime is completed, the concept for further development is
worked out
2
Early to mid 1990s : electric power sector in light of social and
political situation in Russia
Turnover of shadow and semicriminal economics up to
US$ 8 bln.
Non-payment crisis: cash collection
no more than 20%
21 AO-Energos filed for bankruptcy
Drop in liquid assets indices
and
solvency
Strikes
Negative financial and economic
developments
STATUS OF ELECTRIC POWER SECTOR OF RUSSIA
3
Results: 1998-2001
Tendency of Last Years - Increase in Power Generation
and Power Consumption
Energy Consumption
Bln. kW/h
1100
1050
1000
In 1999, for the first time after the crisis
power consumption grew by 2,8 % or
22,9 bln. kWh
1074 1062
1002
945
950
856
900
840
828 813
850
800
832
Generated by
RAO UESR
880
809
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Bln. kW/h 700
875
863
602,2
622,8
2001 2002(forecast)
628,7
634,2
600
1999
2000 2001
2002
(forecast)
4
Results: 1998-2001
IPS/UPS operation dynamics
Frequency, Hz
99.94
100.00
50
100
94.6
49.98
95
49.96
in 2001, 97. 28% of
the time IPS/UPS
maintained within
UCTE standards
90
49.94
49.92
%
calendar
time
49.99
78.6
50.00
85
80
49.9
49.88
49.92
75
49.88
70
49.86
49.84
49.82
Average frequency
65
IPS/UPS operation at standard frequency
over a 1 year period
1996
1998
2000
60
2001
5
Results: 1998-2001
Solving the Non-payments Problem in
RAO UESR: 1998 - 2001
Total losses of
RAO UESR due to
non-payments and barter, mln.
euros (according to Deutsche
Bank estimates)
8000
7000
6000
5000
112
120
101
14
100
7891
13
12
96
11
80
9
48
8
60
7
40
4000
10
92
22
6
5
17
4
20
3
3000
15
104
3154
2
0
1
2000
1000
0
0
Q2 Q4 Q2 Q4 Q2 Q4
1998
3
1999
2000
0
Q2
Q4
2001
Q1
2002
9
2
7
0
6
electricity supplied
3
2
1998
1999
2000
0
6
Results: 1998-2001
Operating revenue is growing
Billion rubles
15
47
14
50
49
44
48
13
43
46
400.0
45
40
12
352.0
42
37
41
11
36
39
38
33
10
35
34
32
31
26
9
260.0
8
30
29
28
7
27
22
25
24
6
23
21
5
20
15
19
grew by 114 %
18
17
4
16
11
14
3
13
8
12
2
10
5
9
4
7
6
grew by 135%
1
1
0
3
2
0
1999
2000
2001 (forecast)
* The figures have been calculated taking into account the purchasing
power of ruble as of December 31, 2001
7
Results: 1998-2001
12.3 billion rubles were earned through implementation of
Cost Reduction Programme in the Holding in 2001
the
Cost reduction structure of the Holding in 2001
6%
2% 3%
1%
4%
4%
Fuel balance
Fuel rate
35%
Fuel - other
Refurbishment
Wages
Non-core services
Management expenditures
16%
Property surplus
Non-core
20%
9%
Others
Cost reduction
programmes stimulate
management of
companies to reach
greater bottom line
results through
targeted cost
reduction
8
Results: 1998-2001
Annual payments
to the consolidated budget of the Russian Federation
Billion rubles
73.1
15
47
14
50
49
44
48
13
43
46
45
40
12
42
37
41
11
36
39.6
39
38
33
10
35
34
9
32
24.7
31
26
30
29
28
8
grew by 184.6 %
7
27
22
25
24
23
23.5
6
21
5
20
15
19
18
17
4
grew by 160.3%
16
11
14
3
13
8
12
2
10
5
9
4
7
6
grew by 105.1%
1
1
0
3
2
0
1998
1999
2000
2001
Payments to the consolidated budget of the Russian Federation
9
Results: 1998-2001
The international audit by Pricewaterhouse Coopers: 47 billion
rubles of the net profit in 2001 (preliminary figure)
Net profit of the Group, billion rubles
47.0
100
1998
1999
0
-100
1.0
2000
- 11.9
2001
In 2000 the Group for the first time
obtained operating profit of 7.9
billion rubles and net profit of
1 billion rubles.
(forecast)
-500
- 532.3
* The figures were calculated taking into account the purchasing power of
ruble as of December 31, 2001
10
Results: 1998-2001
Measures for increasing of
RAO “UES of Russia” capitalization
Elaboration of a strategic program of
corporate development for the next
3 years
The Dynamics of average
equities price
9
8
16
Strategy «3 + 3»
Discussion with
shareholders
6
5
4
14
Approval by the Board
of Directors according
to discussion results
3
2
14,82
1
0
12
10
12,26
10,68
3Q 4Q
2001
Increase Holding Efficiency through
cost reduction and income growth
7
16,14
1Q 2Q
2002
Attract experts to improve
communications with investors and
minority shareholders
11
1990s: World trends in electric power sector
complete liberalization
of electric power
sector
California (1995)
Argentina (1990)
Great Britain (1990)
Skandinavia (1992)
Hungary (1999)
Tailand (1996)
Brazil (1995)
Kazakhstan (1998)
Italy (1999)
Competition
EU Directive (1996)
Price liberalization
Russia (2001) Moldova (1999)
Greece (2000)
State monopoly
France (2000)
Private
investments
Ukraine (1997)
SAR (2000)
Non-discriminatory
access to grid
12
Prospect: 2002-2004. Russian power sector reform
Reforms: separation of natural monopoly and competitive sectors
Market rules
GENERATION
SUPPLY
DISPATCH
GRIDS
Competitive
sectors
Natural
monopolies
Liberalisation of pricesetting mechanisms
and stimulation of
market participation
Securing equal access to
grids.
Establishment of technical
and commercial
infrastructure for the
market
Regulated
tariffs
13
Prospect: 2002-2004. Russian power sector reform
Legislative Base for Reforms
July 11, 2001
Basic guidelines of
the power sector
reforms were
approved by the
Government Decree
# 526
April 26, 2002
The package of draft laws on power sector
reforms was introduced by the Prime
Minister to the Federal Assembly of the
Russian Federation
December 17, 2001
The Government Decree #
873 establishes a
Governmental
Commission responsible
for power sector reforms
The Federal Law “On the
Power Sector”
Amendments to the
Federal Law “On the State
Regulation of Tariffs”
Amendments to the Civil
Code
April 2, 2002
Amendments to the
Federal Law “On Natural
Monopolies”
Amendments to the
Federal Law “On Energy
Saving ”
Amendments to the
Federal Law “On
Competition ...”
The Governmental Decree #
226 approves price-setting
methods for electric power
and heat
14
Prospect: 2002-2004. Russian power sector reform
RAO “UES of Russia”: reforms in the coming two years
2002
2004
state
52%
Federal
Transmission
Company 100%
minority
shareholders 48%
RAO
“UES of
Russia”
state
52/48%
100%
Federal
Transmission
Company
52/48%
System
Operator
100%
System
Operator
52/48%
AO-energo
Holding
Administrator of
Trade System
Wholesale
generating
ОГК
companies
Wholesale
generating
ОГК
companies
АО-энерго
АО-энерго
AO-energo
Interregional
grid companies
Basic
reform model
АО-энерго
Territorial
generating companies
15
Prospect: 2002-2004. Russian power sector reform
The regional projects launched: order № 200
Defines priorities for regional energy
companies reforms
RAO UES
Order
№ 200,
05.04.2002
 For 100%
subsidiaries –
АО-energo – till
August 1, 2002
Sets the time limits for decisions on new
companies creation
9
Foresees negotiations by the general directors
of AO-energoes with creditors to reach the
agreement about debt adjustment
 Other
4
3
8
subsidiaries АО-energo – till
October 1, 2002
Obligates the AO-energoes general directors
to organize consultation with the parties
interested
16
Prospect: 2002-2004. Russian power sector reform
Regional projects: base model
Base model for AO-energo restructuring was approved
by the UES Board of Directors on 6.03.2002
AO-ENERGO
MANAGEMENT COMPANY
GENERATION
GRIDS
SUPPLY
GRIDS
GENERATION
SALES
 Reorganisation of AO-energo in the form of separation
 Transfer of management of newly created companies to management companies
Transfer high voltage transmission lines of AO-energo to interregional grid companies,
transfer of the property of regional dispatch units to the System Operator
17
Prospect: 2002-2004. Russian power sector reform
Regional projects at different stages
of the approval procedures at RAO UES
15
47
14
13
12
11
Execution of the RAO UES order # 563
10
33
9
15
4
of 17.10.2001 “Measures to Reform
3
8
2
4
5
1
1
0
subsidiaries and dependent companies»
RAO UES is currently examining 57 reform projects
concerning 68 regional energy system
8
7
6
The following projects has approved by
Management Board - 7
Reform Committee - 3
UES’s Board of Directors - 14
5
9
7
6
3
2
0
23 agreements and 7 letters of intent concerning the reform
have been signed with regional governors
18
Prospect: 2002-2004. Russian power sector reform
Principles of Conducting Transactions with RAO UESR Assets
Possibility for shareholders to make their propositions as to which
appraisers to employ
Market asset prices based on the independent valuation
Open tenders when selling assets
Possibility of shareholders’ participation in founding of daughter
companies
Equality of conditions for every shareholder when buying out
securities
No reduction in the level of payables
Public disclosure of information
Independent valuation of assets
Preservation of the shareholding structure and amount of shares of
each shareholder in newly created companies as a result of
restructuring
19
Prospect: 2002-2004. Russian power sector reform
Key Decisions on Restructuring are Made in Cooperation
with Minority Shareholders
Project preparation
15
47
14
UESR’s Project
Committee
is functioning within
corporate procedures
Minority
shareholders
8
7
6
5
General
Shareholders’
Meeting
Boards of
Directors of
power companies
Governmental
Commission on
Russian Power Sector
reforming
2
4
1
1
Reforming Committee
under UESR’s Board of
Directors
0
reflects the position of the
Government as a company’s
shareholder
Board of Directors of
RAO UESR
The Evaluation Committee is functioning under the Board of Directors. The Committee has
chosen Deloitte & Touche to create common methods
for valuation of power companies
20
Prospect: 2002-2004. Investment
Short-term Investment Program «5000 МWt»:
Projects for 2002
North-West TPS (CCGT), 450 MWt
Transaction goal - to attract a strategic investor to
complete the 2nd power generating unit
Transaction type: tender for 25% +1 share with an
option for other 25%
Pskov CPS, 215 MWt
Transaction goal - to attract a strategic investor
Transaction type: tender for 25%+1 share with
gradual increase of investor share in the capital up
to 51%
21
Prospect: 2002-2004. East-West strategy
Change in the European Power Systems’ Borders: 1991- 2002
UCTE
expansion
1987
1995
Spain
1991
USSR
1994
Russia
1996
Russia
intercon’d
1999
CIS
intercon’d
2001
GDR
Portugal
1997
1997
Poland
Morocco
Hungary
Algeria
Slovakia
Tunisia
Czech
Rep.
Planning
Greece
MIR
Romania
IPS/UPS
UCTE
UCTE is expanding, Eastern
interconnection is restored. This
has lead to the inevitable
alternative: back-to-back station or
global synchronization
22
Thank you for your attention