OREANDA-NEWS. At a meeting of the Board of Directors, held on September 18, 2014 in the form of absentee voting, the adjusted Business Plan of the Company, including the Investment Program for 2014, was approved. The adjustment of the Business Plan of the Company is associated with the completion of the functions of an electricity supplier of last resort in the Bryansk and Smolensk regions, as well as the need for the execution of the Directive of the Government of the Russian Federation on the reduction of general and administrative expenses in 2014 at least by 15% of their actual value in 2013.

Planned revenue for electricity transmission services within the adjusted Business Plan for 2014 is 0.8% above the fact of 2013, due to the increase in the average tariff for the transmission of electrical energy and the transfer of the function of a supplier of last resort of the above regions. Negative factor in the revision of the planned value of net supply was the reduction of electricity consumption by large customers in the 1st half 2014.

As part of the taking over and performance by IDGC of Centre's branches of the functions of a supplier of last resort the adjusted Business Plan for 2014 provided for receipt of the revenue from the resale of electric energy and power in the amount of 8.3 billion RUB, which is 48.1% less than the fact of 2013. The main reason for the indicator decline is the "transfer" of the functions of a supplier of last resort from the branches of the Company to winners of the tenders held by the Ministry of Energy of Russia. Revenue growth from grid connections by 55.6% is related to the need to perform in 2014 a number of major contracts in the Belgorod and Tver regions.

Operating costs for 2014 are planned at 1.0% lower than in 2013, but the company plans to reduce administrative and management costs in 2014 by 15% from the level of 2013 in accordance with the Directive of the Government of the Russian Federation.

Earnings before interest, taxes, depreciation and amortization (EBITDA) are projected at 23.5% higher than the actual values in 2013. Net profit of the company in accordance with the Business Plan will reach 1.9 billion RUB, which exceeds the actual value in 2013 by more than 6 times.

Predicted value of the joint operation productive supply to consumers within the adjusted Business Plan for 2014 is 54.4 billion kWh, which is 1.4% lower than the fact in 2013. The main reasons for the reduction of the net supply with respect to the fact for 2013 are the consequences of termination of "last mile" contracts and the decrease of actual electricity consumption following the results of the first half of 2014. In 2014 IDGC of Centre planned a slight increase in losses in comparison with the fact of 2013 at 0.02%. The increase in the relative amount of losses is due to lower supply to the grid in 2014 due to the termination of the "last mile" contracts.

The key factors considered when adjusting the Investment Program for 2014 were the actual implementation of the Investment Program in the 1st half of 2014, the outcome of purchasing and procurement procedures in the 1st half 2014 and approval of design and estimate documentation for construction and reconstruction projects.

The approved Business Plan, including the Investment Program, for 2014 meets the requirements of the Government of the Russian Federation to reduce costs, take into account the interests of both consumers and shareholders and is aimed at improving the reliability, quality and availability of power supply to customers while maintaining the profitability of operations.

At the held meeting the Board of Directors also approved the report of General Director of the Company "On execution of the Business Plan (including the Investment Program) of the Company in 2Q 2014 and 1H 2014" and adjusted annual and quarterly target values of key performance indicators of General Director and senior managers of the Company for 2014.