MRSK Yuga : IDGC of the South stabilized accounts receivable

Accounts receivable of IDGC of the South PJSC (Rosseti group of companies) for electricity transmission services are stabilized and amount 16.7 billion rubles. The actual growth in accounts receivable by the results of the three quarters of 2015 amounted 1.6 billion rubles. In September contractors of IDGC of the South PJSC reduced their debts by 525.3 million rubles. According to preliminary estimates by the results of 10 months the Company's accounts receivables will reach 17 billion rubles.

Although quite big sums have been paid out, the Company's main delinquent payers are guarantee suppliers in the Company's responsibility areas - their debt is 8.7 billion rubles and territorial grid companies which debt is 5.2 billion rubles. Energy retail companies have also reduced their debt to 821 million rubles. Consumers have vice versa increased their debt up to 2 billion rubles.

The largest sum of accounts receivable (almost 57% of total accounts receivable) has Volgograd branch of IDGC of the South. Rostov and Astrakhan branches have 18% each and Kalmenergo - 7%.

By the end of September accounts receivable at Volgograd branch of IDGC of the South have reduced by 165 million rubles in comparison to the indicator of the beginning of the month. Such positive results are achieved due to implementation of agreement on rescheduling of debt of a guarantee supplier. In Rostov region the contractors have reduced the debt by 492 million rubles by the results of three quarters of 2015.

IDGC of the South is currently dealing with large non-payers: 'Astrakhan energy retail company' PJSC, 'KalmEnergoKom' JSC (the company is bankrupt). Thus, 'KalmEnergoKom' JSC paid out 9.6 million rubles in September. The situation with Astrakhan energy Retail Company' PJSC is a bit worse. In October the company paid IDGC of the South only 11% of the accrued sum of payment for services of electricity transmission.

Reduction in the level of accounts receivable is considered by the Company as one of the top priority activities. The high level of nonpayment impedes the Company's activity; it can be particularly sensed in autumn-winter period when the Company focuses its efforts on provision of uninterrupted electricity supply to customer regardless of weather conditions.