On Jan. 29, 2020, the Board of Directors has conducted an in-presentia/in-absentia Board meeting. In the course of the meeting, directors have scrutinized and decided on the range of corporate issues, focused on the development and enhancement of reliability and security of the grid complex.
During the meeting, the Board of Directors has scrutinized and adopted the 2020-2030 Digital Transformation of OAO IDGC of Urals Program. The program determines the goals and objectives, key tenets, approaches of digital transformation, and contains the list of pilot projects and digital transformation governance structure in the service area. The aim of the Program is to change the logic of processes and shift the Company to risk-oriented governance, based on digital technologies and big data analysis.
Rosseti Ural Region plans to increase its adaptability providing economic effectiveness and enhancing reliability of electricity supply. Therefore, the Company defined the key directions of digital transformation: company management, technological process management, development of additional services and, of course, enforcement of integrated information security system. Transformation of technological processes, firstly, is focused on reduction of losses, increase of net supply, enhancement of observability and controllability of the grids and is designed to increase the quality of supply by reducing SAIDI and SAIFI down to 1.056 and 0.724.
Changes in company management shall ensure harmonization of business processes, reduction of costs, enhanced quality of planning and profitability of the core operations. Overall expenses of the digital transformation program shall total RUB 53 billion. It should be noted that management of technological process accounts for the vast majority of expenses, with over 80% of investments to be spent on smart metering. Implementation expenses shall be covered by economic effects. All projects of the Program are cost effective, funded by equity and debt.
The Board of Directors has also examined and adopted the 2020-2030 Development of Smart Metering in OAO IDGC of Urals Program, being a component of the Digital Transformation Program.
It is worth reminding that Rosseti Ural Region widely presented its promising plans regarding digital transformation at the Innoprom 2019 forum. In 2019, the Company and the Government of the Sverdlovsk region have signed an agreement on innovative development of the grid complex that stipulated the innovative development strategy. And the Company’s Board of Directors has finally adopted this strategy.