MRSK Severo Zapada PAO : Details of Certain Decisions Taken by the Board of Directors of the Issuer

1. General details

1.1. Issuer's full business name

Public Joint-Stock Company "Interregional Distribution Grid Company of the North-West"

1.2. Issuer's abbreviated company name

IDGC of the North-West, PJSC

1.3. Issuer's location

Russia, Leningrad Region, Gatchina

Address of the Company: Russia, 188300, Leningrad Region, Gatchina, 31 Sobornaya str.

1.4. Issuer's PSRN

1047855175785

1.5. Issuer's TIN

7802312751

1.6. Issuer's unique code assigned by the registration body

03347-D

1.7. Internet-page address used by the Issuer for information disclosure

www.mrsksevzap.ru, www.disclosure.ru/issuer/7802312751/

2. Contents of notice

2.1. Quorum of the session of the Board of Directors of the Issuer and the results of decision-making voting:

Quorum of the session of the Board of Directors:

11 out of the 11 members of the Board of Directors participating in the session, the required quorum was present.

Results of voting on the issues:

2.2. Contents of decisions made by the Board of Directors of the Issuer:

ISSUE No. 1: On approval of the Company's corrected Business Plan including the Investment Program and information on key operational risks for 2016 and the forecast performance indicators for 2017-2020 inclusive of the program for increasing operational efficiency and reducing the expenses of the Company for the period of 2016-2020.

Decision:

1. Approve of the corrected Business Plan of IDGC of the North-West, PJSC, including the Investment Program and information on key operational risks for 2016 and take under advisement the estimated figures for the period of 2017-2020 in accordance with Appendix No. 1 to this decision of the Board of Directors of the Company.

2. Approve of the program for increasing operational efficiency and reducing the expenses of IDGC of the North-West, PJSC for 2016-2020 with account for achievement of the target value of per unit reduction of operational expenses by at last 3% annually in accordance with Appendix No. 2 to this decision of the Board of Directors of the Company.

3. Instruct the Sole Executive Body of IDGC of the North-West, PJSC:

3.1. ensure implementation of additional measures aimed at enhancement of operational efficiency of IDGC of the North-West, PJSC inclusive of improvement of the financial standing of the Company and reduction of the losses from the electric energy transmission activities of the Arkhenergo, Vologdaenergo, Karelenergo, Komienergo and Novgorodenergo branches of IDGC of the North-West, PJSC in 2016-2017 through:

- enhancement of operational and investment efficiency, enhancement of performance in terms of energy efficiency and energy saving, power supply reliability and quality;

- settlement of disputes with tariff regulation bodies following the outcome of the decisions as may have been taken in 2016;

- increasing the level of payment for electric energy transmission services per each branch of IDGC of the North-West, PJSC;

- implementation of the measures as per the plan of measures for enhancement of activities efficiency and improvement of the financial-and-those financial standing is unsatisfactory;

- ensuring that in 2017 the baseline level of operational (controlled) expenses (inclusive of expenses from profit as stipulated in the Business Plan of the Company per tariff regulation subject and integrated into the tariff-and-balance decisions since 2018 (for the next long-term regulation period);

- inclusion of return of the applied negative accumulated levelling in the tariff declaration of IDGC of the North-West, PJSC for 2017 with account for application of the rate of return per each tariff regulation subject except for the branches of the Company implementing measures for prolongation of the long-term regulation period;

- ensuring consistency of operational expenses in the Business Plan of the Company (inclusive of expenses from profit) to the level accounted for in the tariff-and-balance decisions per each tariff regulation subject in 2017 and in subsequent periods.

3.2. ensure generation of planned performance indicators during scheduled correction of the Business Plan of the Company for 2016 and during generation of the Business Plan of the Company for 2017-2021 with account for inclusion of the effect from implementation of the measures as per Clause 3.1 of the decision of the Board of Directors of the Company.

Deadline: November 2016.

3.3. ensure submittal of the corrected 2016 Business Plan of the Company for consideration to the Board of Directors of the Company with account for the long-term investment program of the Company for the period from 2016 as approved by the Ministry of Energy of the Russian Federation in accordance with the procedure established by Resolution No. 977 of the Government of the Russian Federation "On investment programs of power industry actors" dated 01.12.2009 in case it differs from the parameters stipulated by the approved Business Plan of the Company for 2016-2020.

Deadline: 10.11.2016.

3.4. inform the Board of Directors of the Company of progress in execution of the decisions as per Clause 3.1 of the decision of the Board of Directors of the Company.

Deadline: November 2016.

2.3. Date of arrangement of the session of the Board of Directors of the Issuer whereat the relevant decisions were made: 21.04.2016.

2.4. Date and number of the minutes of the session of the Board of Directors of the Issuer whereat the relevant decisions were made: Minutes dated 25.04.2016 No. 203/18.

3. Signature

3.1. Deputy General Director
for Corporate Governance of
IDGC of the North-West, PJSC

D.A. Orlov

(under the Power of Attorney No. 119 dated 27.07.2015)

3.2. Date April 25, 2016

(signature)

L.S.