11 May 2012 17:36
MRSK Holding
Management of MRSK Holding to be Transferred to FGC
11 May 2012. Moscow, Russia. MRSK Holding (LSE: MRSK) ("the Company"), the largest electricity distribution company in Russia, today announced that the Russian Government, the majority shareholder of the Company, has decided to transfer the functions of the sole executive body of MRSK Holding to Federal Grid Company of Unified Energy System ("JSC FGC UES"), the Russian electricity transmission company.
MRSK Holding believes that the Russian Government's decision is in line with its plan to optimise the Russian electricity grid infrastructure, including through restructuring the transmission and distribution electricity grid sector. The Government expects that consolidating the management of the transmission and distribution electricity grids should help raise the overall efficiency of the electricity distribution sector in Russia, synchronize investment programmes and ensure a more efficient regulation of tariff revenue. It is also expected to solve the 'last mile' issue, which is related to cross-subsidisation between the transmission and distribution grids.
Furthermore, the Government is in the planning stages of implementing a unified technological policy for the electricity grid sector to enhance reliability of electricity distribution and raise the quality of electricity supply.
The Company will keep the market informed of any further developments.
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For further information: | |
MRSK Holding | |
Maria Stepanova, Head of IR | +7(495) 995 5333 (ext. 6724) |
FTI Consulting | |
Larisa Millings / Marc Cohen | +44 20 7831 3113 |
Oleg Leonov / Maria Shiryaevskaya | +7 (495) 795 0623
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MRSK Holding is the largest electricity distribution company in Russia and, the Company believes, one of the largest electricity distribution companies in the world by length of distribution lines and installed transformer capacity. MRSK Holding holds interests in and manages 11 interregional and five regional distribution grid companies in Russia. As at 31 December 2011, MRSK Holding together with its subsidiaries owned and operated approximately 2.1 million kilometres of electricity distribution lines with a total installed transformer capacity of approximately 402 GVA. Through its subsidiaries, the Company operates in 69 regions of Russia, covering an area of approximately 7.7 million square kilometres occupied by approximately 85 percent of Russia's total population according to Rosstat. The Company reported revenues of RUB 634.6 billion and net profit of RUB 39 billion for 2011.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MRSK Holding. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industry, as well as many other risks specifically related to MRSK Holding and its operations.