Handling accounts receivable
The amount of accounts receivable for electricity transmission services as of year-end 2015 was RUB 12,849 million.
The main reasons for the growth of accounts receivable are as follow:
- The growth of current debt due to an increase in revenue for electricity transmission services,
- Breach of contractual obligations by service consumers as relate to the payment for services actually provided,
- Disputes in terms of services provided.
As a result of the claims work performed by the Company to collect overdue accounts receivable for the electricity transmission services provided, favourable judgments were obtained in 2015 as part of 495 cases for a total amount of claims of RUB 6,537 million, while recovery of RUB 1,011 million under 17 cases was dismissed. The proportion of satisfied claims in favor of the Company was 87%, which is below the value reported for the same period last year by 10 percentage points.
For the same period in the previous year, favourable judgments were awarded in relation to claims in amount of RUB 7,249 million (458 cases), and claims of RUB 163 million were dismissed (12 cases).
|Branch||Variation, RUB million|
According to the results of the judgments, in 2015 writs in amount of RUB 5,520 million were served, of which RUB 5,192 million, or 94% were discharged. For the same period in the previous year, writs for a total of RUB 5,188 million were served, with RUB 4,187 million, or 81% discharged.
Coverage of overdue accounts receivable by activities aimed at reducing the debt is at a consistently high level and was 99.7% as of year-end 2015.
The most efficient measure is the claims work, despite time-consuming lawsuits.
Apart from the claims work, there are other measures being taken in accordance with the Regulation on Handling Accounts Receivable for Electricity Transmission Services:
- Dispute settlement negotiations;
- Entering into direct contracts for electricity transmission services with end consumers of electricity;
- Entering into debt restructuring agreements;
- Set-off of counter claims of the same kind and assignment of receivables (cession), etc.
|Company||Accounts receivable, RUB million||Variation, RUB million||Action|
|JSC Arkhenergosbyt (Arkhenergo branch)||2,949||–557||Debts are collected through the courts of NP ”Market Council” have repeatedly addressed the question of deprivation of the status of a supplier of last resort in Arkhangelsk Oblast, however to date, no decision of deprivation was made.|
|JSC Vologda Sales Company (Vologdaenergo)||967||–57||Debts are collected through the courts.|
|JSC Kondopoga (Karelenergo branch)||883||—||Debts are collected through the courts.
The reason for the debt is the consumer's refusal to conclude a contract for electricity transmission services for 2015. Through legal proceedings, the sum of unreasonable earnings is recovered from JSC Kondopoga for the electricity transmission services actually provided.
|JSC Intaugol Mine (Komienergo branch)||201||–110||Bankruptcy proceedings were initiated in respect of the consumer.|
|JSC Oboronenergo (Arkhenergo, Vologdaenergo, Karelenergo, Kolenergo, Komienergo branches)||341||–282||Debts are collected through the courts.|