Appendix No. 6. Glossary
For the purposes of the Annual report the following terms, definitions and acronyms shall be used.
EBITDA – Earnings before Interest, Taxes, Depreciation and Amortization
RAB – Regulatory Asset Base (regulated base of capital employed),return on invested capital method
JSC – joint stock company
GDP – gross domestic product
HVL – high voltage line
OPL – overhead power lines
HV – high voltage
HEI – higher educational institution
GAPG – hydroelectric pumped storage power plant / branch of Gorno-Altay Power Grids (depends on context)
GS – guarantee supplier
HPS – hydro-electric power station / city power grids (depends on context)
S&A – affiliated/associated company
Ut. – unit
UES of Russia – Unified Energy System
HUI – housing and utilities infrastructure
CJSC – Closed -Joint Stock Company
nm. – named
TIN – taxpayer’s identification number
PAT – processing technology, automatization and telecommunication
CL – cable line
km – kilometer
kop. – kopeck
KPI – key performance indicators
CDTN – corporate data transfer network
MIA of Russia – Ministry of Internal Affairs of the Russian Federation
mln – million
bln – billion
MOEX – PJSC MOEX
IDGC – interregional distribution grid company
SMB – small and medium business
IFRS – International financial reporting standards
MUE – municipal unitary enterprise
RGP – required gross proceeds
VAT – value-added tax
R&D – research, development and design work
NP – non-profit partnership
NC – new construction
OJSC – Open-Joint Stock Company
LLC – limited liability company
WMEP – wholesale market for electricity and power
PJSC – public joint stock company
ICC – industrial civil engineering
CSP – customer service point
SS – substations
RAS – Russian Accounting Standards
RTS –regional tariff service
rub. – ruble
RF – Russian Federation
REG – regional electric grids
ICS – internal control system
MM – mass media
p. – page
RMS – risk management system
TV – television
TS – transformer substation / technological connection (depends on context)
TGO –territorial grid organization
Incl. – including
thsd – thousand
F. – accounting form
FSMC of Russia – Federal Securities Market Commission
pcs. – pieces
Units of measurement
Ampere (А) – unit of measurement of electricity current intensity in international system of units (SU).
Watt (W) – unit of measurement of electricity current capacity in international system of units (SU).
Watt-hour (Wh) – off-system unit of work or produced electricity. Used predominantly for use of administrative use of electricity, national economy and for measurement of electricity production in power industry.
Volt (V) – unit of measurement of electrical voltage in international system of units (SU). Equal to electric tension that cause a direct current in power chain of 1 Ampere under capacity of 1 W.
Volt-ampere (VA) – off-system measurement unit of full current capacity.
Litre (l) – metrical unit of volume measurement.
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) – analytic indicator equal to volume of proceeds before interest, taxes, depreciation and amortization.
Gross Domestic Product (GDP) – market value of all end products and services (created for direct consumption) produced within one year in all fields of economics on the territory of a state for consumption, export and accumulation, regardless of national identity of used production factors.
Dividend Policy – set of principles and methods for determining proportions between a capitalized part of Company profits and part of Company profits paid in the form of dividends, as well as a system of relations and principles for determining the procedure and terms of dividend payment, establishing Company liability in case of failure to fulfill its obligation to pay dividends.
Subsidiary/associated company (S&A) – economic entity when 20% of its voting shares are owned by another company.
Unified national (all-Russian) power grid – set of power grids and other power grid facilities, owned on the basis of title or under other ground provided by federal laws, by power grid subjects and ensuring stable power supply of customers, functioning of a wholesale market and a parallel work of Russian power grid system and power grid systems of other states.
Unified Energy System (UES of Russia) – an aggregate of production and other property power facilities connected in the unified production process (including production in a form of combined power and heat generation) and power transfer under condition of centralized operational-dispatching management.
Sole executive body – an official acting on behalf of a company on the basis of company carter and entitled to exercise legal capacity of this company regarding on issues not covered by other company bodies.
Investment association – investors, value fund, rating agency, stock exchange, investment banks, investment analytics and experts.
Interregional distribution grid company (IDGC) – open joint stock companies established during restructurization of the power field and formed as operational (or operational and holding) companies in terms of reorganization of IDGC and RGC in a form of affiliation.
Return on invested capital method (RAB, Regulatory Asset Base – regulatory base of capital employed) – system of tariff-making on the basis of long-term tariff control aimed at attraction of large-scale investments to construction and modernization of grid infrastructure and stimulation of efficient expenses of grid organizations. Main principle of methodology is ensuring return of funds invested to company assets for determined period that comply with asset service term and receipt of justified rate of return to engaged capital. Therewith, borrowed funds are returned within a period of 20 years and more. Tariffs are determined for a period from three to five years which ensures stability and forecastability of situations for investors and decreases their risks. Customers, in their turn, receive quality guarantee of supplied services, possibility to predict power expenses and, ultimately, possibility of price reduction.
Required Gross Revenue (RGR) – economically justified volume of financial means required by company in order to perform regulated activity within the control period.
Distribution grid companies – open joint stock companies formed in result of division of AO-energo by types of activity on the basis of power grid facilities not related to the uniform national (all-Russian) power grid.
Registrar – legal persons being a professional market participant that provide shareholder register maintenance, registration of title transfer and distribution of materials to shareholders and other services to company.
Market capitalization – aggregate market value of all offered shares of an issuer determined by market quotations. Market capitalization is calculated as a result of the number of shares of an appropriate category (type) to a market price of one share disclosed by the trade organizer on the securities market and determined in accordance with the Procedure for Calculating Market Price of Equity Securities and Investment Shares of Mutual Investment Funds admitted to circulation through trade organizers, approved by a resolution of the Federal Commission for the Securities Market of Russia on December 24, 2003 No. 03-52/ps.
Editor’s remarks in the text of the Report
Interested persons – shareholders, customers, contractors and business partners, investors, state bodies, employees of JSC IDGC of Siberia and other natural and legal persons interested in administrative activity of PJSC IDGC of Siberia (definition “Interested persons” complies with stakeholders used in international practice in order to specify the mentioned category of persons).
Executive body (Management apparatus) – management body (central office) of PJSC IDGC of Siberia that exercises functions of financial control and accounting, general system coordination and administrative control of the branches and S&A.
Key Performance Indicators (KPI) – system of financial and non-financial indicators that influence qualitative or quantitative change of results in regard to strategic goal of PJSC IDGC of Siberia.
Company, IDGC of Siberia – PJSC IDGC of Siberia / JSC IDGC of Siberia.
Corporate management – a set of processes ensuring management and control over its activities and including relations between shareholders, Board of Directors and executive bodies of PJSC IDGC of Siberia in the interests of shareholders.
Independent director – In accordance with the Corporate Governance Code (recommended by the Bank of Russia in accordance with letter No. 06-52/2463 dated April 10, 2014), an independent director is a person who has enough professionalism, experience and independence to form his/her own position, can make objective and honest judgments free from an influence of executive bodies, certain groups of shareholders or other interested persons. Therewith, under normal circumstances, a candidate (elected member of Board of Directors) who is associated with a company, its significant shareholder, an essential counterparty or a competitor of the company or associated with the state, cannot be considered independent. Additional conditions are contained in paragraphs 103-107 of the Code.
Non-executive director – member of Board of Directors, not being a member of executive bodies of a joint company and not complying with all requirements made to an independent director.
Controlled company – legal person controlled by PJSC IDGC of Siberia under agreement on transfer of authorities attributed to a sole executive body. As of 2017 such company controlled by PJSC IDGC of Siberia is Tyvaenergo JSC.