RAO “UES OF RUSSIA” ANNUAL REPORT 2006

30 Corporate Governance System
Corporate Governance System 31
2 0 0 6 ANNUAL REPORT OF RAO “UES OF RUSSIA”
Non-core Assets
The non-core assets of RAO UES Group are
the non-current assets owned by the Com-
Human Resource Management
One of the Company’s key goals in personnel
management is to raise the human resour-
In 2006, 45.3 percent of the production personnel
at RAO UES energy companies received
training under the Company’s advanced and
Average Annual Headcount
of OAO RAO "UES of Russia", persons
In 2006, the Company continued to implement
its Strategy for non-government pension
insurance for the employees of RAO UES
pany and its SDCs comprising the property,
ces efficiency at the RAO UES entities in the
further training programmes.
companies, which seeks to create a long-term
plant and equipment, and construction projects
in progress not used in the companies’
core businesses (generation, transmission,
dispatching, distribution and sales of electricity
and heat) and related businesses (repairs,
system, metering and accounting services), as
well as the shares, units, and ownership interests
held by the Company and its SDCs in the
entities not engaged in the core and related
activities.
In 2006, RAO “UES of Russia” continued the
work to appraise and divest its non-core assets.
The Company put in place a new system
for selling its non-core assets, which allows
a more precise procedure for decision-taking
course of the electricity reform.
The average headcount of RAO “UES of
Russia” in 2006 was 1,169 employees, a reduction
of 303 compared to 2005.
The bulk of the reduction comes from the
liquidation of the Company’s branch, “UES
Energy Construction Complex”, as well as liquidation
of some non-core branches.
The average number of employees at RAO
UES entities in 2006 amounted to 469.3 thousand
people, 460.1 thousand of which were
production personnel. In 2005, the headcount
figures were 461.2 thousand and 452.1 thousand,
respectively.
The major factors that influenced the head-
The Company’s key priorities in personnel
development, professional training, retraining
and further training in 2006 were:
to create a personnel development system
in the subsidiaries and dependent companies;
to provide training and development
opportunities for senior executives of
RAO “UES of Russia” and its SDCs, a measure
intended to improve the professional
level of management;
to offer personnel training programmes
designed to implement special equipment
failure prevention measures at power facilities.
2006
2005
2004
TOTAL PERSONNEL
PRODUCTION PERSONNEL
1,108
1,169
1,176
1,472
1,450
1,849
non-government pension insurance system
using a uniform approach, based on common
goals and principles, and is intended to ensure
an adequate living standard for the Holding
Company’s employees after retirement,
and effective handling of HR issues relating
to hire, retention and providing incentives
to the energy companies’ employees.
In the course of the Strategy implementation,
the Boards of Directors of 255 companies
of RAO UES Holding approved their non-governmental
pension fund plans covering over
429 thousand employees.
An important event of year 2006 in the field
of HR management was the approval by the
and expanding the range of options available
count at RAO UES companies in 2006 were
The Corporate Energy University estab-
Management Board of RAO “UES of Rus-
for the sale of assets and makes the process
more open, competitive, and transparent.
Decisions on the non-core divestitures are
the transfer of ownership of municipal-owned
communal and distribution electricity grids to
some of the Company’s subsidiaries, and the
lished pursuant to the decision of the Management
Board of OAO RAO “UES of Russia”
provided training in 2006 to over 7 thousand
Development of Non-Governmental
Pension Insurance Programmes at the Holding Company’s SDCs
sia” of the Strategy for Corporate Assistance
and Corporate Support in Improving Housing
Conditions for Employees of RAO UES
taken by the Board of Directors of the Com-
commissioning of new generating capacity.
staff members of all categories.
Subsidiaries.
pany if the asset’s fair market value is over
The principal objectives of the HR policy at
RUB30 million.
The key methods used to sell the non-core
assets are as follows:
ascending price auction;
descending price auction;
sale without announcing the price (negoti-
RAO “UES of Russia” in 2006 were:
to provide further training, reorientation
training, and development of personnel;
to ensure professional and career development;
to create and develop the human capital re-
2006
2005
192
250
320
429
ated sale).
In 2006, RAO “UES of Russia” and its
SDCs sold their shares in the following
non-core companies: OAO “Mikhaylovskoe
Resort”, OAO “Severovostokenergostroy”,
OAO “TEMBR-Bank”, OAO “NDB-Bank”,
OAO “Rostopenergo”, ZAO “East-West Energy
Agency”, ZAO “Yurenergo”.
serve;
to improve the life and health safety arrangements
and prevent industrial injuries;
to develop the non-state pension insurance
and assist staff members in improving their
housing conditions.
2004
90
110
NUMBER OF PROGRAMMES
EMPLOYEE COVERAGE, '000 PERSONS