Annual report 2010

15. Operation and Technical PolicyProduction Control, Occupational Safety, and Process SafetyJSC IDGC Holding’s SDCs operate hazardous productionfacilities, identified in accordance with FederalLaw No. 116-FZ of July 21, 1997, “On IndustrialSafety of Hazardous Production Facilities.” Mosthazardous production facilities are the facilitiesidentified as using fixed hoisting mechanisms.In accordance with Orders of the Federal Servicefor Environmental, Technological and NuclearSupervision of the Russian Federation(Rostekhnadzor) No. 606 of September 4, 2007,and No. 131 of March 5, 2008, some SDCs in 2008carried out the identification of facilities whoseproduction processes used hazardous substances(combustible liquids) exceeding by over 2% themaximum permissible volume of 200 tonnes asspecified by Federal Law No. 116-FZ of July 21,1997, “On Industrial Safety of HazardousProduction Facilities”; they also obtained registrationof hazardous production facilities on thestate register of transformer substation sites (118facilities of Tomsk Distribution Company and 183transformer substation sites of Komienergo, abranch of IDGC of the Northwest).All of the hazardous production facilities operatedby SDCs are registered on the State Registerand have the required Certificates of Registration.Compliance with the Rostekhnadzor requirementsin relation to the registration of substations rated35 kV and above on the state register of hazardousproduction facilities entails considerableexpenses associated with payment for trainingservices, industrial safety evaluation, and thepreparation and keeping of documents that overlapthe documents issued in the electric powerindustry. The aggregate expenses incurred by JSCIDGC Holding’s SDCs may total about 4.4 billionrubles. Neither Federal Law No. 116-FZ of July 21,1997, “On Industrial Safety of HazardousProduction Facilities” nor industrial safety rulesprovide for any technical requirements applicableto the structure, design, production, installation,or operation of oil-filled electrical equipment,which may lead to a higher accident rate. JSCIDGC Holding and its SDCs decided to initiateamendments to regulatory documents in order toeliminate the redundant industrial safety requirementsapplicable to substations rated 35 kV andabove, which was submitted to the Ministry ofEnergy of the Russian Federation in accordancewith the established procedure. The Ministry ofEnergy of the Russian Federation, accordingly,submitted proposals for amending Federal LawNo. 116-FZ of July 21, 1997, to the Ministry ofEconomic Development of the Russian Federationand the Federal Service for Environmental,Technological and Nuclear Supervision.JSC IDGC Holding’s SDCs developed and obtainedfrom Rostekhnadzor’s interregional territorialdepartments approval of the Regulations forProduction Control of Compliance with IndustrialSafety Requirements for Hazardous ProductionFacilities. At JSC IDGC of the Urals, theRegulations for Production Control of Compliancewith Industrial Safety Requirements forHazardous Production Facilities are in theapproval obtainment phase. The Regulations setforth the structure, powers, objectives, and functionsof the persons involved in organizing andexercising production control. As a result of theapproval of the Regulations, branches and productionunits of IDGC Holding entities appointed thepersons responsible for production control.2010 saw quantitative growth of accidents from 44to 56, in which 59 people were injured (versus 48in 2009), including 20 killed (against 19 in 2009).The principal factors of injury rate growth in 2010were as follows:— decrease in the qualifications rate and disciplineof the electrical personnel;— quantitative increase in electrical installationsin an unsatisfactory technical conditionwith dangerous defects;— increase in the scope of electric grid facilitiesand, accordingly, personnel headcountwithin the framework of the strategy for consolidatingelectric grid assets.Growth of the injury frequency rate (number ofthe injured per 1,000 people) from 0.27 to 0.31compared with 2009 is primarily caused by headcountgrowth. The injury frequency rate (numberof the killed per 1,000 people) was 0.106, i.e.remained almost the same as in 2009 (0.108).143