Inter RAO Group is pleased to inform that there are no large scale staff redundancies at either JSC Inter RAO - Electric Power Plants or CJSC Nizhnevartovskaya TPP.

At the same time, in the process of implementing the Inter RAO Business Development Strategy for the year 2020, the companies of the Group have been engaged in various projects aimed at cost optimization and efficiency improvement.

Mainly, these projects include the decommissioning of obsolete and inefficient facilities (including 1,107 MW at Verkhnetagilskaya TPP, Yuzhnouralskaya TPP and Cherepetskaya TPP in 2015-2016). At the same time, the Group is building and commissioning state-of-the-art generation facilities under the CDA program; and these projects involve the engagement of highly qualified personnel.

Simultaneously, the Group is outsourcing a number of functions (mostly, repairs) to enable the transfer of staff to the subsidiaries of Inter RAO Group, as well as to a number of small and medium-sized companies operating in the regions of our presence. Thus, the above companies continue to provide outsourced services to entities of Inter RAO Group, while preserving local jobs.

In line with the ongoing staff rotation plans and following the mergers of our production branches, certain overlapping administration and management positions at Sochinskaya TPP, Dzhubginskaya TPP, Kostromskaya TPP and Ivanovskie CCGY have been eliminated and we have been canceling vacant positions. Also, there is a natural retirement process when employees who have reached the retirement age leave the Group.

Moreover, following the instructions of Russian President Vladimir Putin to improve the level of operational efficiency by 20% by 2020, Inter RAO Group has been optimizing is business processes and creating highly efficient jobs.

As of 1 January 2015, the power plants operated by JSC Inter RAO - Electric Power Plants or CJSC Nizhnevartovskaya TPP had a staff of 12.4 thousand jobs. In 2015, the Company's staff has been reduced by 850 jobs (we mean jobs, not employees), i.e., by 7% only, which is in line with average staff turnover rates of 5-10%. Moreover, staff reduction initiatives involve only administrative, management and unqualified personnel. For example, only 13 people out of over 700 employees of Iriklinskaya TPP were made redundant, and all of them have received benefits guaranteed by the Labor Code of the Russian Federation, while JSC Inter RAO - Electric Power Plants assisted all of them in finding jobs with regional enterprises. The same approach has been adopted by all companies of Inter RAO Group.

Future staff optimization processes will depend on the upgrade program and further decommissioning of inefficient facilities, as well as on the situation in the industry and the overall economic environment in Russia. In any case, neither of these factors will affect the reliability and stability of power supply.

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Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business. The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and the leading Russian energy company by energy efficiency Inter RAO Group owns and operates approximately 35 GW of installed power generation capacity. www.interrao.ru


OAO INTER RAO UES issued this content on 04 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 04 February 2016 18:11:12 UTC

Original Document: http://www.interrao.ru/en/news/company/?ELEMENT_ID=5579