2006 Social Responsibility and Corporate Sustainability Report (стр. 6 )

Category of employees	Total as of 31.12.2006
Managers	1061
Specialists	1403
Office workers	59
Workers	4460
TOTAL	6983

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In the whole, there was a healthy level of personnel rotation in the enterprise that, in its turn, is an indicator of the personnel policy stability.

In 2006 the Company provided the workers with a full scope of social benefits and guarantees, secured by the collective bargaining agreement.

The Company and the OJSC «The Russian Insurance Company «ROSNO» had signed contracts on voluntary and compulsory medical insurance; the employees of the Company received material aid for medical treatment when leaving for vacation, and could count on the Company’s support in case of tough financial situation.

Personnel training

For 2persons were trained. In the system of corporate personnel training for each category of workers the following priority directions were determined:

- Managers - training on industrial safety, improvement of professional skills at seminars on NWEM. In 2managers were trained.

- Specialists - training on industrial safety, labor protection, economy and the finance. In 2persons were trained.

- Workers - training on safety precautions and labor protection. 2514 persons were trained.

- Getting the second higher education, occupational retraining. 15 persons were trained.

In 2006 in the field of occupational training and improvement of the personnel professional skills the Company worked in collaboration with the following educational institutions:

-  PEIPK, St.-Petersburg, branches in Novosibirsk, Chelyabinsk - improvement of professional skills of managers and engineering specialists;

-  NEI «MCFR», Krasnoyarsk – accountants’ training;

-  « Institute of market technologies », Moscow - training on NWEM;

-  Khakass Polytechnical College, Abakan – workers’ training;

-  IT Academy, Krasnoyarsk – programmers’ training.

-  Polytechnical Institute - second higher education.

As a prospective employer, the Company actively cooperates with the higher and special educational institutions of Siberia with the aim of attraction of young specialists and formation of a personnel reserve on the specialties needed in the future. In 2students were in training in the Company’s executive bodies and subsidiaries. For the same period the Company hired 55 young specialists. The Company plans to increase the number of students being in training with the possibility of further employment of the best ones. According to the agreement with the Siberian Federal University the Company established its scholarship. It is awarded to the five best students for special achievements in educational and scientific activity since the 4th year of full-time studying. At present the scholarship is paid to three students of the Thermal Power Faculty, one student of Electromechanical Faculty (specialty "Power Plants"), one student of Institute of Management and Business Technologies (specialty «Economy and Management in Power Industry»). Scholarships are awarded on a competitive basis for a period of one academic year. The nominees are put forward by the faculty chairs preparing specialists of the thermal power industry starting since the 4th year on a selective basis. The scholarship compulsory condition is further training in the Company’s enterprises (Krasnoyarsk CHP-1, CHP-2, CHP-3, Krasnoyarsk Heating System, Minusinsk CHP, Abakan CHP, Nazarovo SDPP, Kansk CHP, Sosnovoborsk CHP).

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Plans of the JSC «Yenisei TGC(TGC-13)» personnel training in 2007.

In 2007 “the Program of employees’ professional training and development” aimed at the personnel training in accordance with the Company’s urgent problems and some subdivisions’ needs will be developed; it will have several primary directions:

·  Training and improvement of professional skills of the industrial and technological personnel;

·  Development of the Company’s administrative resource;

·  Improvement of professional skills of specialists and managers;

·  Managers and specialists’ training on drawing up financial reporting according to international standards of the financial reporting;

·  Training personnel dealing with the work on WEM.

Cooperation with the leading educational institutions of the Siberian region, Moscow and St.-Petersburg is intended.

Labor protection, health and operation safety

To ensure the Company’s employees’ health protection and working capacity, the employees to be hired are to have preliminary medical checkups. In 2007 regular medical checkups are planned for the control over the employees state of health working in the harmful conditions, preventive treatment and timely diagnosing the initial symptoms of occupational diseases, diagnosing common diseases interfering with the work in the harmful production conditions.

By the results of the planned medical checkup of the personnel of fuel-transport shop (FTS) and thermal network shop (TNS) individual rehabilitation charts of workers of these shops were updated. Among FTS personnel the following risk groups were stated: employees having high blood viscosity, blood hypertension, low level of a functional condition. For each risk group a set of preventive measures was performed: daily check of blood pressure was organized; employees with constant high blood pressure were referred to the city clinic for treatment; on the basis of the first-aid post preventive physiotherapeutic procedures were organized; diabetes screening was performed. The employees were prescribed medicines in accordance with their medical problems.

On December, 21st, 2005 the Company and the OJSC «Russian Insurance Company» «ROSNO» took out the accident and sickness insurance and voluntary medical insurance for 2006.

The employees working in harmful labor conditions, operating personnel and the personnel of motor transport shop were subject to accident and sickness insurance.

By the accident and sickness insurance 386 persons (60 % from the total number), including top-managers - 5 persons, administrative board - 59 persons, specialists - 13 persons, workers and clerks - 309 persons were insured.

The employees working in harmful labor conditions, those from the health risk group, taking into account the results of medical checkup and psycho-physiological examination (PPE) were subject to voluntary medical insurance.

Totally, labor protection costs of the JSC «Yenisei ТГК (ТГК-13)» made:

-  in 2006 - ,32 thousand rubles (including: on actions for accident prevention - 74 885,32 thousand rubles, on carrying out of sanitary and hygienic actions

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for the prevention of occupational diseases - 39 643,38 thousand rbl., on actions for the general improvement of labor conditions - 37 660,97 thousand rbl., on providing workers with individual protection means - 11 637,62 thousand rbl.);

For the 1st half-year 2007 - 56 362,00 thousand rbl. (including: on actions preventing accidents - 20 357,71 thousand rbl., on carrying out sanitary and hygienic actions for the occupational disease prevention - 7 896,57 thousand rbl., on actions for the general improvement of the working conditions - 17 997,43 thousand rbl., on providing workers with individual protection means - 10100,29 thousand rbl.).

Thus during the period of 2006 - June, 2007 in the JSC«Yenisei TGC(TGC-13)» enterprises there were no cases of industrial injuries and occupational sickness.

Employees’ social security

According to the Collective bargaining agreement the Company’s employees are given the following benefits and guarantees:

•  Payment of children’s recovery camp voucher at a rate of 10 % of its cost and free vouchers for the employees workers having two and more minor children, disabled children, and also children in one-parent families.

•  Monthly maternity leave payments in the amount of 400 rbls to women having a child under three years old.

•  Monthly payments in the amount of 250 rbls to idle pensioners retired from the OJSC «Khakass Generation Company» ( the OJSC "Khakassenergo”) and having no other fringe earnings, except pension.

•  Lump sum payments to the Company’s employees:

- to parents at a birth of a child – not exceeding 3 000 rbls;

- compensation for the next of kin’s funeral expenses (the spouse, children, parents of both spouses), not exceeding 2 000 rbl.;

- once in a year medical treatment payment to each employee having certain Company service: 1to 5 years - 1300 rbls., 5 to 8 years rbls., over 8 years rbls.

- at marriage registration (own marriage if it is registered for the first time) – up to 2 000 rbls.;

- to the employees called up for active service from the OJSC «the Khakass Generation Company» (the OJSC "Khakassenergo").

•  Provision of workers and idle pensioners with transportation and mechanisms from the Company’s fleet of vehicles for their personal needs(transportation of farm products, maintenance of personal plots and others):

- with 50 % cost payment for each working hour (according to the accounting if these expenses have been approved in the business plan);

- for idle pensioners: once in a year, at the expense of the employer’s means, if available.

•  Lump sum benefit in the amount of the official salary (tariff) plus 400 rbls. paid per each year of service in the OJSC «Khakass Generation Company» (the OJSC "Khakassenergo") and other enterprises of electric power branch at employee’s retirement dismissal (on any reason), within three months the person reaches the retirement age, when there is the corresponding certificate confirming the pension entitlement.

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Husky live in the conditions of the Far North. At stops they warm each other up. Husky sleep straight on the snow, forming one shaggy ball.

The draught dog can transport 65 kg weight for 120 km in 12 hours. The average power of 12 dogs’ team - 2,2 kW.

The installed electrical capacity of the Yenisei TGC(TGC-13) enterprises - 2458 МW; the installed heat rate - 7117,4 Gcal/h.

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MAINTENANCE OF THE BASIC PRODUCTIVE ACTIVITY SUSTANABILITY

Maintenance of reliable power supply and economic efficiency of thermal and electric power generation is the priority for the electric power companies. Making the most economically efficient decision and maintaining safe and failure-free functioning of the electric power industry technological infrastructure are major conditions of the Company’s activity.

The major directions of the Company’s sustainability maintenance include structural reservation and anti-failure management. Reliability of the equipment operation is also achieved at the expense of development and improvement of the branch integrated automated control system in the electric power industry.

With the transition to market forms and mechanisms of electric power industry entities interaction development of modern information technologies (application of various corporate business facilities – ACS, ERP-systems), promoting efficiency of the Company’s stations activity becomes important for the Company. So, Axapta ERP-system is used in planning of the Company’s resources and managing new power entities construction.

In many respects the efficiency of the process of value establishing is determined by the quality of the Company’s fixed capital. In the course of equipment obsolescence depreciation charges rise, that reduces the added value and increases the Company’s repair expenses.

The Company is working on the problem of the effective use of depreciation funds. The depreciation charges fund is an important source of the Company’s investment program formation and is used, first of all, for modernization and operating equipment reconstruction, and partially for the new construction. The decision on depreciation) funds is considered at the Company’s Board meeting and approved by the Board of Directors. The modernization and reconstruction program is based on the proposals of the Company’s subsidiaries. First of all it includes actions for reliability maintenance, industrial and environmental safety of the equipment operation, extension of operation time, and also equipment modernization; with the focus on economically beneficial actions.

Maintenance of reliable and safe functioning of the power company is the key problem of managers and specialists of the JSC «Yenisei TGC(TGC-13)».

The Company’s activity on repair, reconstruction and modernization is regulated by the legislation of the Russian Federation and branch standard documents. The Company approved the Technical Policy determining priorities in the productive activity.

Decision-making on the actions provided by the annual repair program is based on the following principles:

- conformity of actions to a long-term plan of repairs of the basic production assets;

- maintenance of necessary reliability of the consumers’ power supply;

- conformity to the program of costs management;

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- economic efficiency of the actions included in the annual repairs program.

The repair plan on objects of the JSC «Yenisei TGC (TGC-13)» for 2006 was defined in the amount of 1 thousand rubles. Total performance of repairs for 2006 made 1 thousand rubles, or 100,7 % of the annual program.

The repair plan on the objects of the JSC «Yenisei TGC (TGC-13)» for 2007, according to the order № 16 from 18.01.2007, had been stated in the amount of 1 thousand rubles. As of 01.07.2007 the plan performance made thousand rubles, or 48,7 % of the annual program.

In comparison with 2006, the repair plan for 2007 increased by 15,2 % , that leads to reliability augmentation of the equipment operation.

In 2006 financial means in the amount thousand rubles were planned for the reconstruction and modernization (including performance of supervising bodies’ regulations), in 2thousand rubles (increase by 15 %).

Table 11. Key parameters of repairs, modernization and reconstruction, new construction

of the JSC “Krasnoyarsk Generation” in 2006, thousand rubles

Entity	Equipment repairs	Repair of buildings and facilities	Reconstruction and modernization	New construction
Krasnoyarsk CHP-1		47 199	63 335	5 000
Krasnoyarsk CHP-2		13 848	57 653	0
Krasnoyarsk CHP-3	62 148	9 575	27 425	0
Nazarovo SDPP		27 189	74 374	0
Kansk CHP	33 313	6 287	22 192	29 200
Minusinsk CHP	56 519	8 981	12 623	8 500
Sosnovoborsk CHP	13 426	2 474	7 522	0
Krasnoyarsk heating system	2 687	3 313	90 168	63 650
Executive body	0	7 000		0
TOTAL	1

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Table 12. Key parameters of repairs, modernization and reconstruction, new construction of the OJSC «Khakass Generation Company» in 2006, thousand rubles.

Repairs
Modernization and reconstruction of the operating enterprises	40 777
New construction and expansion of the operating enterprises	38 800

During 2005, 2006, 2007 the number of technological infringements in the JSC«Yenisei TGC (TGC-13)» stayed at the same level (2infringements, 2infringements, for 6 months 2technological infringements). Within the same period there were no failures in the Company’s subsidiaries.

The most significant condition of the power safety ensuring is reliability of fuel supply.

Risks associated with the breach or cessation of fuel supply are minimal. The JSC «Yenisei TGC (TGC-13)» plants use coals of Kansk-Achinsk coalfield. Taking into account sizeable reserves of Kansk-Achinsk coalfield, one of the biggest in Russia, the further development of power industry in Siberia will proceed with the use of these coals as the main fuel.

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APPENDICES

Appendix 1.Information

Full name of the Company

The Open Joint-Stock Company “Yenisei Territorial Generating Company # 13” (TGC-13)

For Short

In English: JSC “Yenise TGC (TGC-13)”.

Location and mail address

Russian Federation, Krasnoyarsk, 144 A Bograda Street

Heads of the executive body:

Director General	Oleg Ivanovich Salkov	(3912)
First Deputy Director General for Finance and Economy	Vladimir Borisovich Fait	(39
Deputy Director General - Chief Engineer	Mikhail Innokentyevich Shukailov	(39
Deputy Director General for Corporate Management	Vasily Vasilyevich Schukin	(39
Deputy Director General for Resource Management	Viktor Fedorovich Eler	(39
Deputy Director General for Strategy and Development	Aleksandr Vladimirovich Cheremukhin	(39
Deputy Director General for Information Technologies	Sergey Anatolyevich Yemelyanov	(39
Deputy Director General for Power Sales	Oleg Valeryevich Titov	(39
Accountant-General	Maya Vasilyevna Bazhenova	(39
Director for Legal Maintenance	Aleksandr Sergeyevich Yefremov	(39
Director for Investments – Head of Investment Department	Stepan Stepanovich Yarovoi	(39
Director for Resource Maintenance - Head of the Resource Maintenance Department	Yevgeny Nikolayevich Fuzeyev	(39 007
Director for Finance - Head of Finance Department	Igor Vladimirovich Korol	(39
Director for Economy - Head of Economy Department	Ludmila Vasilyevna Kopeleva	(39
Director for Economic Activity Maintenance	Andrey Vyacheslavovich Kopytov	(39 063
Deputy Accountant General for Taxation - Head of Taxation Department	Yevgeniya Valeryevna Permiakova	(39

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