Russia’s IES re-organizes its utility activities

22 July 2005 – Russia’s IES-Holding has started a major reorganization of the utility segment of its business following the expansion of its regional utility interests.

One aim of the reorganization is to provide IES-Holding with the operative activity in the utility sector. To solve this challenge on interregional level IES-Holding has established Federal Sales Center (FSC).

The second aim undertakes the development of new projects in multi-utility business and communal sphere, which are to be covered by several IES-Holding’s subdivisions, including newly established ones: IES-Development and Integrated Investment Solutions.

ZAO “Federal Sales Center” (FSC) started to operate from July 2005 (100 per cent subsidiary of IES-Holding). It will arrange sales of electricity, heat and gas as well as water supply and housing management. FSC businesses are located in Sverdlovsk, Perm, Ylianovsk, Tver and Vladimir regions, Komi Republic and Krasnodarsky krai.

FSC main tasks are the creation of the effective systems of managing the business on federal level, including the power sales system and services for different categories of consumers, up-to-date billing system, a sole management system of producing and supply network and implementation of sole standards of investment activity and accounting policy.

The establishment of Federal Sales Center – a specialized body for operating with consumers is focused on the implementation of high technologies and standards in the production and supply management in the utility business in order to build a real business infrastructure in the utility sector. Consumer-oriented policy is the core distinguishing feature of management system in multi-utility and communal business, created under FSC.

FSC will work with different groups of consumers – major industrials (Lukoil, SUAL, Severstal, TNK-BP and others), medium scale and small-scale businesses, householders. At the same time FSC’s activity will be focused on up-to-date technologies in sales management with small and medium scale consumers. In 2005 as FSC is planning to achieve the volume of sales more than $100m around Sverdlovsk region.

Director General of ZAO “Federal Sales Center” is appointed Eduard Smelov, who was prior the Executive Director of IES-Holding.