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Annual Report 2015

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Communications with Government Authorities and Non-governmental Organizations

Relations of PJSC IDGC of the North-West with government authorities and non-governmental organizations are systematic and have been carried out both at the federal level as cooperation with the Plenipotentiary Envoy of the President of the Russian Federation to the Northwestern Federal District and at the regional level in RF seven constituent entities.

In 2015, in regions where the Company operates, electricity settlement monitoring commissions created on the initiative of PJSC Russian Grids started under the executive branch authorities. Along with energy professionals, the commissions have included representatives of regional administrations, financial monitoring services, tax services, law enforcement agencies, sales companies and consumers. The work of the participants of interinstitutional cooperation is aimed at developing joint solutions to improve the payment discipline.

One of the key areas of PJSC IDGC of the North-West with government authorities and the business community in the reporting period was the cooperation to synchronise the investment branch programmes and territorial development plans in the regions. In 2015, energy investment fairs were launched. The pilot event was held in Pskov under the auspices of PJSC IDGC of the North-West, Administrative Office of the Plenipotentiary Envoy of the President of the Russian Federation to the Northwestern Federal District, Administration of the Pskov Region, and the Partnership North-West. The fair format was used to organise the direct communication of investors and energy professionals in the field of effective and mutually beneficial grid connection and energy infrastructure optimization. During the Investment Fair, PJSC IDGC of the North-West signed eight letters of intent for cooperation with investors who plan implementing industrial projects in the Pskov Region. The fair has been expected to rise to federal level with more participants engaged, including both private grid companies and inter-regional businesses. Also in 2015, PJSC IDGC of the North-West started performing the Agreement of PJSC Russian Grids with the Government of the Komi Republic to ensure reliable power supply and consolidation of the regional electric grid complex, as well as performing a similar agreement entered into between PJSC Russian Grids and the Government of the Republic of Karelia.

In a continuing effort to improve the availability of grid infrastructure, PJSC IDGC of the North-West signed agreements with the Government of the Murmansk Region and the Pskov Region with intent to reduce the time of grid connection of consumers. Cooperation of energy companies with executive branch authorities will improve the quality of information exchange and operational coordination relating to grid connection, and facilitate the tying in the energy investment programmes with development schemes of the regions and municipalities.

During the reporting period, and pursuant to the agreements concluded between PJSC IDGC of the North-West and regional governments, the efforts to support and develop the agroindustrial complex of the Northwestern Federal District and implement measures as to ensure reliable and uninterrupted power supply to agricultural enterprises were continued.

Representatives of PJSC IDGC of the North-West have strengthened the deputy corps of legislative bodies at the local level. The Company's employees are members of regional assemblies and municipal councils and social councils, chairmen of territorial public self-governments, members of socio-political parties, and deputy assistants.

The work of Consumer Councils with participation of representatives of governments, large, small and medium-sized businesses, and regional associations was continued. Working with the main energy entities in the form of joint presence in advisory bodies allows for more efficient addressing issues of functioning of the energy complex in the Northwestern region and its further development for mutually beneficial cooperation between the parties.

In 2015, PJSC IDGC of the North-West initiated legislation to introduce amendments to Article 23.2 of the Federal Law No 35-FZ 'On the Electric Power Industry' dated March 26. 2003 as to clarify the application of the investment component to cover the costs of grid companies as relates to the development of the existing infrastructure. These adjustments will eliminate the inconsistencies in the regulations governing the matters of electric grid connection, facilitate access to the grid infrastructure, reduce the cost and the time needed for grid connection of consumers, and curb the rise in tariffs.

A new direction in the Company's cooperation with government authorities during the reporting period — the work under the national charging infrastructure programme in order to provide conditions for the introduction of autonomous public and private electric transport. Respective agreements between the electric grid company and regional governments were signed in the Komi Republic, the Pskov Region and the Republic of Karelia. The agreements provide for comprehensive joint efforts to introduce electric transport, including the preparation of technical standards and regulations, personnel training and retraining, study of experience in the implementation of charging infrastructure and electric transport.

PJSC IDGC of the North-West has strengthened the cooperation with regional offices of the Federal Service of Court Bailiffs. Exchange of information about persons in default of payment for transmission of electricity was organised, as well as joint work on the enforcement of court rulings against these persons.

In accordance with the rules for implementation of the unified communication policy that were approved by the Board of Directors of PJSC IDGC of the North-West in 2015, Company communication with related electric power entities, territorial executive branch authorities and local government authorities and offices of EMERCOM of Russia is provided.