OREANDA-NEWS. April 29, 2010. During 2008 and 2009, the economic effect achieved by implementation of IES-Holding's new business model and energy-producing asset management optimization program reached RUB8 billion.

IES-Holding commenced the development of the new business model and IES management system as early as 2007, prior to acquiring its main energy-generating facilities. The Holding chose to organize a number of field-specific business units - divisions. Divisions of the generation united the production facilities of territorial generating companies (TGC): Generation Urals division (TGC-5 and TGC-9), Generation Center division (TGC-6) and Generation Volga division (VoTGC). The primary purpose of the divisions is to produce electric and thermal energy at a specific time and within specific volumes, which are regulated by the sales schedule, determined by the results of trading operations performed on the wholesale energy market by Trading division. IES energy and gas distribution organizations now form Retail division, and IES structure has been unified.

The process of building the division model of management was completed at the end of 2008. Structuring and merging the Holding subdivisions, which earlier may have performed similar functions as well as centralizing a number of services allowed for a significant reduction of the number of administrative personnel.

Besides, during 2008-2009 IES-Holding developed a universal purchasing policy and established a central purchasing unit - electronic trading platform. Currently, all companies are implementing new information technologies. IES-Holding has launched a program for automation of generating divisions production and economic activities management, another program for automation of purchasing and recording of fuel intended for the energy-generating enterprises is under way, several projects for automation of treasury operations and consolidation of accounting information have already been completed. Owing to the large-scale adaptation of technical and IT solutions, the holding managed to achieve a significant economic effect both in the implementation costs and return on investments.

Alongside with implementation of the new business model, all the above-listed measures provided a means for a significant increase in the business effectiveness, transparency and manageability, and allowed for cost reduction.