Analysis of cancelled contracts: number of contracts, capacity, value in 2011

  Refusals from connection on the initiative of an applicant (cancelled contracts) Payments by applicant under concluded contracts, RUR mln
  pcs MW RUR mln (returned to applicants) Paid by an applicant, RUR mln Debt of an applicant, RUR mln
Permenergo 261 27 40 537 399
Sverdlovenergo 1 065 107 1 296 50
Chelyabenergo 389 74 4 146 174
IDGC of Urals 1 715 208 45 979 623

Permenergo

The branch cancelled 261 contracts, where 203 contracts with output up to 15 kW (135 contracts with natural persons), 23 contracts with output from 15 to 100 kW, 22 contracts with output from 100 to 750 kW, 13 contracts with output over 750 kW. Applicants refuse from connection due to change of intentions, refusals to construct equipment. Main reasons for debts are shaky economic status or lack of funds (107 contracts) and extension of terms for equipment construction (93 contracts). To decrease debts the branch does the following: it signs additional agreements on payment rescheduling (as well as extension of contract terms), keeps claim activities (including in a judicial proceeding), cancells contracts (in case an applicant refuses from equipment construction). In 2012 the branch plans to continue this and decrease debt by RUR 50-100 mln.

Sverdlovenergo

The branch cancelled 1 065 contracts, where 984 contracts with output up to 15 kW (868 contracts with natural persons), 48 contracts with output from 15 to 100 kW, 26 contracts with output from 100 to 750 kW, 7 contracts with output over 750 kW. The reasons for cancellation of contracts are refusal from connection (883 contracts), changes in request conditions (118 contracts), financial problems (34 contracts), changes in ownership (29 contracts), bankruptcy (1 contract). The branch has 139 contracts in the red - 58 contracts with output up to 15 kW, 41 contracts with output from 15 to 100 kW, 33 contracts with output from 100 to 750 kW, 6 contracts with output over 750 kW. Main reasons for debts are: an applicant forgot to include connection fee in the 2011 investment program (1 contract), registration of documents on transfer of property to IDGC of Urals as connection fee (1 contract), financial problems (137 contracts). To recover a debt the following measures are taken: claim forwarding (110 pcs.), cancellation agreement forwarding (12 pcs.), billing (9 pcs.), documents are forwarded to the legal department (5 pcs.), documents were forwarded to the court (2 pcs.), registration of documents on transfer of property as connection fee (1 pcs.).

Chelyabenergo

Applicants cancelled 389 contracts, where natural persons requesting output up to 15 kW cancelled 180 contracts (46% of overall number of cancelled contracts) due to refusals to mount electric boilers in detached houses (provision of gas supply to the district), 209 contracts with SME and developers were also cancelled (54% of overall number of cancelled contracts) due to refusals to establish or expand businesses or due to request to another gridco. Main reason for debt is low repayment discipline due to lack of financial ability. All consumers without exception – from natural persons to local administrations – are among debtors. With a view to this, our connection and legal departments keep claim activities aimed at recovery of debt in legal claim procedures: letters of interest, claims (including penalties equaling RUR 356.8 thous.) are forwarded to a consumer, in other cases claims are submitted to the court. We shall continue to recover debts in 2012 by close cooperation with all parties interested in solving the issue.