Representatives of leading power companies have discussed the specifics of work under direct contracts with consumers

On 27 April 2018, the round table Relevant Issues of Consumer Affairs on the Energy Market arranged by TGC-1 was held in the framework of the Russian International Energy Forum in St. Petersburg. Representatives of Gazprom Energoholding LLC, PJSC MOEK, PJSC OGK-2, JSC Gazprom Teploenergo, managing companies of Moscow, St. Petersburg, Leningrad and Vologda Oblasts, Petrozavodsk, Murmansk and Stavropol Krai, as well as the industry experts took part in the event.

The main topic of discussion was operation of the housing and utility services market participants in conditions of the enacted law on direct contracts.

General Director of TGC-1 Alexey Barvinok noted that as of 1 April 2018 overdue receivables of the St. Petersburg managing companies to the Company amounted to RUB 4.137 billion. Over the past year, it was reduced by RUB 425 million.

"Switching to direct contracts is an efficient way to deal with major non-payers being utility providers. We have a good experience in Petrozavodsk: with support of Karelia management we were granted the status of the United Tariff Body and switched to direct contracts in 2015. At that moment, the overdue receivables of the wholesale consumer-reseller JSC Petrozavodsk Municipal Systems amounted to RUB 621 million with collectability from 75% to 90%. In December 2016, the receivables were completely paid off, while in 2017 collectability reached 95.2%.  Effective instruments are required for successful operation under direct contracts: billing and claim administration work. We keep a close eye on how the urban structures prepare for the new circumstances, first of all SUE Multiple-Access Computing Centre. In any case, we are ready to work under direct contracts. Since 2017, more than 500 houses in St. Petersburg have already switched to direct relations with TGC-1 with increase in collectability registered in all of them. In 2018, we will switch to direct contracts for non-residential premises in St. Petersburg, which are solvent commercial structures located at the ground floors of buildings all over the city.

At the end of the round table, the regional award ceremony Outstanding House Manager was held, following the results of heat consumers' ranking for 2017. Chairmen of Housing and Utilities Service No. 2 of the Moskovsky District LLC and Housing and Utilities Service No. 3 of the Kalininsky District LLC were awarded in St. Petersburg. Chairman of HOA Lenin 45 was granted an honorary award in Murmansk Oblast for high payment discipline. Chairman of the Management Board of HOA Varkausa 37 in Petrozavodsk was honoured for active cooperation and organisation of installation of heat metering units.

In addition, journalists from St. Petersburg, Murmansk Oblast and the Republic of Karelia, who actively cover H&U issues, were granted diplomas.

To take a look through the Rating of utilities providers, as well as heat supply limitation procedure for enterprises, commercial companies and non-residential premises, please visit the TGC-1 website.

For more information on the Company's supply activities see the page TGC-1 to Citizens in VKontakte social network.

Reference

TGC-1 is the leading producer and supplier of electricity and heat in the North-West of Russia. TGC-1 comprises 53 electric power plants within four constituent entities of the Russian Federation: St. Petersburg, the Republic of Karelia, and Leningrad and Murmansk Oblasts.

Outstanding House Manager is the project developed to promote best H&U practices and improve the discipline of payments for supplied resources, as well as to establish the unified platform for experience exchange between power specialists, public authorities and managers of Housing and Utility.