OREANDA-NEWS. October 30, 2015. Ranked 51st, as many as 3 positions up compared to last year, Russia moved in Doing Business 2016 index of the World Bank due to the simplified procedure for connection to power grids of PJSC “MOESK” (belongs to the Rosseti Group of Companies).
Given its performance on the “Providing connection to the electric power distribution system” indicator, Russia made a breakthrough in terms of quality and was ranked 29th in the rating. As for the simplicity of connection to electric grids, in a year Russia made a jump of 24 positions up, using the new methodology http://russian.doingbusiness.org/data/exploreeconomies/russia/ .

Significant grid connection improvements were mentioned by representatives of small and medium-sized businesses interviewed by the World Bank experts. The main criteria that affected the positive assessment included the number of steps reduction and reduction of the grid connection time and cost.

Moscow received 8 points for its performance on the “Electric power distribution reliability index and tariffs transparency” indicator, which is the maximum number of points recieved only by 18 countries out of 189 countries in the rating.

The drastic changes that made it possible to achieve good results have been in progress in the company for several years. In 2015, for instance, PJSC “MOESK” made tremendous efforts that resulted in reducing to 3 the number of procedures necessary for connection to electric grids infrastructure. The grid connection time for a facility of a connection applicant was reduced to 90 days with a 30% reduction in the cost.

Introduction of the “Personal profile” service was one of the reforms implemented by PJSC “MOESK”. The service provides the opportunity to file an electronic application via the grid connection portal of the company, make provisional calculation of the grid connection cost and familiarize oneself with the documents issued without visiting the customer service office.

Issuance and conclusion of a grid connection agreement and a power supply agreement as one step is another innovation that 95% of businessmen preferred to use!

Another major step towards customers was the decision of PJSC “MOESK” to apply, since Q4 2014, the minimum rate under grid connection agreements on connection of commercial facilities of small and medium-sized businesses and provide an option of paying by installments if the customer wishes so.

“Today's success is the result of the great focused efforts to facilitate access to electric grids of the company,” said Aleksandr Pyatigor, the General Deputy Director for Grid Connection and Services Implementation of PJSC “MOESK”. “But we are not sitting on our laurels. The time frame for up to 150 kW grid connection specified in the Doing Business category is 90 days but actually we managed to reduce it to 65 days.”

For reference:

Doing Business, the annual international rating of the World Bank, includes 189 countries assessed based on 10 business regulation indicators. The higher the position of a country in the rating, the more favorable the environment for opening and operation of small and medium-sized businesses is.

Since 2014 the Russian Federation rating has been determined by aggregating results from Moscow and Saint Petersburg, the two biggest cities of the country.

System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI), the additional parameters, were first used in 2015 to develop the rating for 2016.

The electric power distribution reliability and tariffs transparency index covers quantitative data on duration and frequency of power outages as well as qualitative information on the mechanisms through which the power supply company monitors power supply interruptions and restorations, reporting of the power supply company to the regulator on power supply interruptions, tariffs transparency, availability of information on the tariffs and, finally, on financial sanctions aimed at reduction in the number of the outages.