OREANDA-NEWS  On 23 October the Deputy Director of JSC Irkutsk Grid Company Alexey Hvostov reported that JSC Irkutsk Electric Networks company would be finally formed by the end of the year. He reminded that the first stage of reorganization of JSC Irkutskenergo was held in 2006; it consisted in creation of a subsidiary dependent entity - IGC Ltd - on the basis of five grid branches. According to the requirements of the legislation, JSC Irkutskenergo shall cease management of Irkutsk Grid Company Ltd., and the JSC Irkutsk Electric Networks which was spun off from it, will take managing functions of Irkutsk Grid Company Ltd. Reorganization will not increase tariffs for consumers of the Irkutsk region, A. Hvostov reported.

Goals, tasks and main directions of the company development will not change. A. Hvostov emphasized that they consist in reliable electric power supplies to consumers. He also noted significant growth of the number of applications for connection, in comparison with the last year. This, accordingly, entails increase in investments, the amount of which will several times grow under this kind of activity.

IGC Ltd. is engaged in the electric power transmission on the territory of the region, and also in connection of applicants' power receiving devices to the networks. The authorized capital of IGC exceeds RUR 20 billion. Over 3,000 people work with the enterprise.

Let us remind that the decision on reorganization of the company in the form of spin-off of JSC Irkutsk Electric Networks was taken at the extraordinary general shareholders meeting of JSC Irkutskenergo at the beginning of September. The decision was caused by legislative necessity of reforming the electric power industry of Russia that assumes division and the further removal of affiliation between natural monopolies (transmission of the electric power, operational dispatching management) and potentially competitive (manufacture and selling of the electric power, repairs and service) kinds of activity which cannot be concentrated in one legal entity.