OREANDA-NEWS. On 15 May 2009 was announced, that “Kazakhstan Electricity Grid Operating Company “KEGOC” JSC is planning to make changes in the income and expense budget for 2009. The planned adjustments will not reflect on implementation of investment programs of the company and are carried out pursuant to Resolution of the Government of the Republic of Kazakhstan dated 24 March 2009 “on measures for implementation of Ordinance of the President of the Republic of Kazakhstan No. 289 dated 30 December 2008”, Order of K. Kelimbetov, the Chairman of Management Board of “NWF “Samruk-Kazyna” JSC, , No. 23-п dated 07-04.09 “On optimizing the management structure and reduction of losses in organization of the Fund group”.

Total planned income of the company is planned to be reduced by 14 % or by KZT 6,123.6 mln.

1. “Operating income” will be reduced by KZT 9.4 bln., this being due to reduction of the rendered services volumes, including:

services on electricity transmission - by KZT 5,326.0 mln. (18.3 %);

balancing electricity generation and consumption - by KZT 3,558.5 mln. (62.1 %), including due to approval of tariff at the rate of 0.018 tenge/kWh.

Forecast volumes of services to be rendered are changed downwards:

services on electricity transmission - by 7,034 mln. kWh (20 %),

dispatching – by 8,443 mln. kWh (11%),

balancing electricity generation and consumption - by 22,511 mln. (16 %).

2. Total expenses of the company will increase by KZT 4.3 bln. or by 11 %, at that the increase by the amount more than KZT 10 bln. is due to charging the exchange difference under loans in freely convertible currency (foreign currency) attracted for the company investment projects financing.

Expenses of prime cost will decrease by KZT 5.8 bln. Including out of savings based on the results of conducted tenders and concluded contracts (KZT 1.2 bln), elimination of expenses (KZT 2.7 bln.), decrease of physical volumes (KZT 1.9 bln.).

Pursuant to Ordinance of the President of the Republic of Kazakhstan No. 289 dated 30 December 2008 “On Measures for Decreasing the Administrative Expenses in Central and Local Governmental Bodies, Holdings, National Companies, Social-Entrepreneurial Corporations”, KEGOC JSC has decreased expenses by KZT 177 bln. as follows:

purchase of transport facilities;

complete overhaul (reconstruction) in office buildings and premises;

celebration of anniversaries and holiday ceremonies;

purchase of expensive office furniture;

conduction of conferences and seminars in Astana;

international business trips of managerial staff, excluding trips approved by decisions of the Government of the Republic of Kazakhstan.

Currently the company is completing the restructuring and optimizing process in administrative sector. Thus, quarterly and any bonuses have been excluded in administrative sector, 33 employees have been fired out of administrative and support personnel. At the same time technical employees have not been covered by reduction of staff.