BPGC

Bashkir Power Grid Company (BPGC) is one of Russia's biggest power grid companies, which ensures electricity transit between the central part of the country and the Urals.
Effective
shareholding

91 percent

revenue
in 2020

19.7 bn ₽

new connections
to the network

13.7 thousand

Development Strategy

BPGC is a modern, innovative, efficient and dynamic company, which dominates the power grid market and controls power grids of all voltage levels in the Republic of Bashkortostan. It manages distribution and transmission grid assets in the Republic of Bashkortostan and carries out design, construction and comprehensive renovation of power facilities using the Smart Grid technology. BPGC’s subsidiaries include LLC Bashkir Grid Company (“BGC”) (transmission grids), LLC Bashkirenergo (distribution grids) and LLC BPGC Engineering (engineering).
Annual revenue
2017201820192020

The team

Dmitry Sharovatov

Chairman of the Board of Directors

Sergey Gurin

CEO

Business

Financial performance 2020

4.4 bn ₽

OIBDA in 2020

22.2%

OIBDA margin

1.2 bn ₽

Net profit in 2020
Revenue is down 5.7% year-on-year, to RUB 19.7 bln, primarily driven by slumping energy consumption by Bashkortostan’s oil producers due to the OPEC+ deal as well as pandemic effects.

OIBDA is down 29.4% year-on-year, to RUB 4.4 bln. Apart from shrinking revenue, the decrease in OIBDA results from a growth in operating costs through one-off dispute settlement transactions.

Net income in 2020 is RUB 1.2 bln, down 56.5% year-on-year, a direct result of the OIBDA reduction.

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Smart Grid and increase in efficiency

39%

smart meters penetration

100%

implementation of Smart Grid technology in Ufa

With a view to enhancing operating efficiency, BPGC continued its long-term programmes including energy conservation and improvement of energy efficiency, overhaul of distribution grids and implementation of Smart Grid solutions, automation of business processes through the use of information technology and ERP systems, migration to a two-tier system of operational and technological management at LLC Bashkirenergo as an optimisation move.

BPGC spent 2020 working on the enhancement of operating efficiency, which involved: automation of business processes employing IT and ERP systems and automation of the planning and control of capital expenditures relating to user hook-ups.

2020 marked the completion of the company’s comprehensive project to upgrade the distribution grid infrastructure of Bashkortostan’s capital Ufa with the new Smart Grid technology, an initiative first launched in 2014. The project translated into a stronger quality of Ufa’s grid infrastructure, an enhanced reliability of power supply, and improved energy efficiency.

The level of penetration of the automated power control and metering system's devices in distribution networks is 39%, which is twice as much as the indicators set by the state program. Another 29.7 thsd meters are scheduled for installation in 2021.



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Implementation of IT-projects

In 2019, Bashkirenergo continued to implement two major IT projects Bashkortostan’s power grid:
the creation of a system for exchanging telemetric Information with an automated system operator – the Bashkir RDA and the enterprise Bashkirenergo. The projects involve the modernization of telemechanics equipment and the organization of communication channels for telemetric information transmission.
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Upgrade of distribution networks

The Company completed comprehensive reconstruction of distribution networks in the Ufa city district. Specifically in 2020, the company refurbished 108 distribution and transformer substations and laid 27.5 km of cables. All in all, the project encompassed 513 substations, 96.5 km of cables, and 75 thsd smart meters.
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Contribution to the regional economy

3.63 bn ₽

CAPEX in 2020
BPGC’s activities are aimed at ensuring reliable, high-quality and affordable power supply to consumers. In addition to its core operating activities, the company pays close attention to its role in driving local economic growth, sustainable development and cooperation. Most of the company’s revenue is generated by its transmission business, which is a natural monopoly and therefore has its prices closely regulated by the government. Other businesses of the group include utility hookup services, engineering and construction of power lines and electrical substations, as well as lease, IT and communication services.
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Power facilities' construction

In 2019, BPGC Engineering, a subsidiary of BPGC, continued the construction of a large power facility outside the Republic of Bashkortostan as part of its strategy to enter the foreign market. The company's specialists have designed and are building a 220kW substation in Revda, Sverdlovsk Oblast. In 4Q 2019 BPGC commissioned the Kustarevskaya substation, utilizing technical construction methods that represent new stages in the development of a Smart energy system.
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Two-level model of operational and technological management

In 2019, Bashkirenergo, a subsidiary of BPGC, successfully completed a large-scale project to transition to a two-level model of operational and technological management.
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