3.2.4 Additional (non-tariff) services

In 2022, to promote additional (non-tariff) services the Company:

• Defined a HQheadquarters unit, liable for general arrangement and coordination of activities related to additional (non-tariff) services at administration level of the branches and production units (Sales and Commercial Departments created).
• Revised the Regulations on additional (non-tariff) services (incl. responsibility matrix) and other regulatory documents on additional services in line with changes in the organizational structure.
• Developed the list of services on the official web-site, incl. calculator of services with additional options, electronic applications or price request.
• Prepared detailed plans on the development of additional services and sales targets.
• Developed a new product line, ensuring development of additional services: CAWconstruction and assembly works integrator, “Energoservis”, solar power, concession agreements, DSW consortium, CAWconstruction and assembly works consortium, agent-scheme CAWconstruction and assembly works materials sales (Rosseti Ural supermarket), electric charging stations.
• Analyzed the market in terms of typical additional (non-tariff) services and prospective launch of new services.
• Analyzed existing business processes related to rendering and development of additional services by type of activity, optimized schemes and regulations on the business processes, factoring in the Regulations on rendering additional services.
• Created an incentive system for the sales of additional services.
• Arranged the process related to the preparation of tender documentation and centralized filing of tender bids.
• Concluded a contract on the issuance of independent bank guarantees within 3 business days.
• Integrated “Tenders”, “Sales”, “Payments” modules into the automated control system for additional (non-tariff) services.

In 2022, the Company also initiated the following activities (ending in 2023):

• Formation of price zones for additional services;
• Modification of the corporate web-site for disclosures on prices of additional services in the regions;
• Update of the Company’s regulatory framework in terms of additional services (factoring in market demand and changes in the organizational structure);
• Fine-tuning of integration of the ACSNTS with information systems of the Company to collect analytical information on client relations;
• Development of simplified scheme for interaction between contractors and conclusion of framework agreements.

During the reported period OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals executed 13+ thousand contracts worth RUBruble 1,745 million.

Financial metrics:

The following lines of business showed the highest revenue gains:

• Construction and assembly works (+ 460% YoYyear on year).
  1. Arrangement of the metering system (installation/replacement, meter repair, installation of automated measuring and information system for electricity fiscal metering, etc.) (+2,002% YoYyear on year).
  2. Other CAWconstruction and assembly works and DSW (+937% YoYyear on year).
  3. DSW for construction, reconstruction and retrofitting of consumer’s grid facilities (+804% YoYyear on year).
  4. CAWconstruction and assembly works, reconstruction and retrofitting of consumer’s grid facilities (+337% YoYyear on year).
• Repair and maintenance (+441% YoYyear on year due to contract with AOJoint-Stock Company EESK on maintenance of AES Invest’s networks).
• Agent services (+301% YoYyear on year).
• Consulting and technical services (+106% YoYyear on year).

The FY2022financial year 2022 revenues grew due to increased scope of additional services and works under large-scale contracts.

• Restoration of power supply related to the execution of a special infrastructure project (RUBruble 568 million).
• Maintenance of OOOLimited Liability Company AES Invest’s grids (АОJoint-Stock Company EESK, RUBruble 297 million).
• CAWconstruction and assembly works on 110 kV Zakharovskaya substation (AOJoint-Stock Company Gorelektroset, RUBruble 36 million).
• Retrofitting of 35 kV power line of Chelyabinsk Cargo Railway Station (OAOOpen Joint-Stock Company RZhD, RUBruble 25 million).
• Delivery and installation of a transformer (ОООLimited Liability Company MFK EXE, RUBruble 17 million).
• CAWconstruction and assembly works on single-circuit 6 kV cable power line (ОООLimited Liability Company Stroykomplekt, RUBruble 14 million).
• Construction of a transformer substation (ОООLimited Liability Company ATEK 74, RUBruble 15 million).
• Reconstruction of a transformer substation (ОООLimited Liability Company SK Integ, RUBruble 12 million).
• Construction of a substation 2×1600 kVA (ОООLimited Liability Company SZ TREST-В1, RUBruble 11 million).

The revenues from external lighting is presented in the table:

The revenues grew due to the conclusion of contracts on CAWconstruction and assembly works, maintenance and repair of external lighting systems in 2022 (to be completed in future periods):

• Maintenance of lighting on regional roads (Perm region, OOOLimited Liability Company Stroygrad plus, RUBruble 75 million)
• Energy service contract (Perm, MBU Blagoustroystvo, RUBruble 11 million)

Financial and economic targets related to sales of additional (non-tariff) services for 2023-2027: