Hotline of power engineering specialists:
The performance of Rosseti Centre is estimated on the basis of key performance indicators, the structure and planned values of which are approved annually by the Board of Directors of the Company. General Director of Rosseti Centre provides the Board of Directors a report on the achievement of planned values of key performance indicators (hereinafter — KPI) at the end of each year.
Key performance indicators also form the basis of material incentives for General Director and senior management of the Company. General Director and senior managers are rewarded by the results of the implementation of KPIs, depending on the degree of KPIs execution for a reporting period (a year).
|
KPI name |
Target value1 |
Performance2 |
|---|---|---|
|
Quarterly KPI | ||
|
No increase in the number of major failures |
No increase |
V |
|
Preventing the growth of the number of accident victims |
No increase |
V |
|
Business solvency indicator - debt to equity ratio |
≤ 1,5 or values on the business plan (taking into account the solvency group) |
V |
|
Annual KPI | ||
|
Total shareholder return (TSR) |
≥ average value of the indicator for companies included in the MICEX PWR Index at the end of the reporting period, or ≥ average value of the indicator for last three years preceding the reporting one |
Х3 |
|
Return On Invested Capital (ROIC) |
≥ 0,9 |
V |
|
Reduction of unit operating expenses |
≥ as approved in the business plan |
V |
|
Level of electric energy losses |
≤ as approved in the business plan |
V |
|
Achieving the level of reliability of services provided |
1 |
V |
|
Reduction of unit investment expenditures |
≥ 15 % |
V |
|
Implementation of a facility commissioning schedule |
≥ 95 % |
V |
|
Compliance with a grid connection deadline |
≤ 1,1 |
V |
|
Workforce productivity increase |
≥ as approved in the business plan |
V |
[1] Approved by the resolution of the Board of Directors of IDGC of Centre dated 26.02.2015 (Minutes # 03/15 of 27.02.2015).
[2] Approved by the resolution of the Board of Directors of IDGC of Centre dated 16.05.2016 (Minutes # 15/16 of 17.05.2016).
[3] Causes: decisions of regulatory agencies in the electric power industry led to shortfall in income and a significant reduction in the value of shares. An additional negative impact on the share price in 2015 was given by the following factors, beyond control of the management: the unsolved issue of "last mile", the deterioration of payment discipline of customers and shortfall in income due to the implementation of discounted grid connections.