key performance indicators 4 s ntent€¦ · tech award of 2016. 26.12 the certifi cate of...
TRANSCRIPT
Shaping the environmentally friendly “closed” nuclear fuel cycle
CONT
ENTS
2016 CALENDAR OF KEY EVENTS ___________________________________________________ 2
KEY PERFORMANCE INDICATORS ___________________________________________________ 4
ADDRESS BY BOARD OF DIRECTORS CHAIRMAN ____________________________ 8
ADDRESS BY CEO __________________________________________________________________________ 10
1. OVERVIEW __________________________________________________________________________________ 12
1.1. General Information ____________________________________________________________________ 13
1.2. Rosenergoatom in Nuclear Power Industry for 25 Years ________________ 1
1.3. Corporate Structure ___________________________________________________________________ 15
1.4. Mission, Vision and Values __________________________________________________________ 17
1.5. Business Model and Capitals ______________________________________________________ 18
1.6. Risk Strategy and Management _________________________________________________ 24
1.7. Situation in Power Industry ________________________________________________________ 32
2. SAFE OPERATION OF NPPS _______________________________________________________ 40
2.1. Generating Capacities. Developing Generating Potential ______________41
2.2. Ensuring Safety of Russian NPPs ______________________________________________ 86
2.3. Radiation Effect on Personnel and Population ___________________________ 93
2.4. Financial Results _____________________________________________________________________100
2.5. Investment Program ________________________________________________________________106
2.6. International Scientifi c and Technical Cooperation ____________________109
2.7. International Business and New Products __________________________________112
3. SUSTAINABLE DEVELOPMENT MANAGEMENT ___________________________118
3.1. HR Policy __________________________________________________________________________________121
3.2. Labor Protection _____________________________________________________________________ 132
3.3. Sci-Tech Policy. Innovations.
Knowledge Preservation and Transfer _____________________________________________ 136
3.4. Environmental Impact _____________________________________________________________144
3.5. Developing Areas of Presence. Charity _____________________________________ 152
4. MANAGEMENT EFFICIENCY ______________________________________________________160
4.1. Corporate Governance ______________________________________________________________161
4.2. Internal Control and Auditing ___________________________________________________ 179
4.3. Property Management _____________________________________________________________ 183
4.4. Purchase Management ____________________________________________________________184
4.5. Quality Assurance ___________________________________________________________________186
4.6. Interaction with Stakeholders ___________________________________________________191
4.7. Public Reporting System __________________________________________________________ 195
APPENDICES TO ANNUAL REPORT_______________________________________________ 197
APPENDIX 1. ABOUT ANNUAL REPORT _________________________________________198
CONTACT DETAILS _______________________________________________________________________ 200
12
3
3
4
1 42
1
2
3
31 2
1
23
4
1
2
3
4
12
3
4
6
531
2
4
200
8
20
00
2017
2015
20
142
013
2016
20
09
2010
2011
20
12
200
120
02
200
32
00
420
06
200
720
05
199
9
199
8
1954
196
419
69
1971 19
72
196
7
1975
1974
1973
1976
198
019
81
1979
198
5
198
4
198
319
82
199
0
198
9
198
8
198
7
198
6
1
1
2
34
2
3
4
2
1
199
7
1992
199
3
3,65
0
VVER
-120
0
‒20
09
—co
nstr
ucti
on
of
NP
P-2
00
6 p
roje
ct p
ow
er p
lant
sw
ith
VV
ER
-12
00
rea
cto
rs b
egan
.
Oct
ober
30
, 20
03
—th
e st
ate
expe
rtre
view
pro
cedu
re w
as s
ucce
ssfu
lly
pass
ed f
or
a fe
asib
ility
stu
dy o
f th
eP
roje
ct f
or
Mid
get
Nuc
lear
Po
wer
Pla
nt
Bas
ed o
n F
loat
ing
Po
wer
Uni
t w
ith
KLT
-40
S r
eact
ors
.
On
Mar
ch 18
, 20
10,p
ow
er w
as s
tart
ed u
p at
the
Ro
sto
v N
PP
po
wer
uni
t N
o. 2
wit
h V
VE
R-1
00
0 t
ype
reac
tor.
Vla
dim
ir P
utin
, C
hairm
an o
f th
e R
ussi
an F
eder
atio
nG
ove
rnm
ent,
gav
e a
com
man
d fo
r po
wer
su
pply
to
the
grid
.
June
30
, 20
10—
laun
ch o
f th
e w
orld
’s
first
flo
atin
g po
wer
uni
t, A
cade
mic
ian
Lom
ono
sov,
at
the
Bal
tic
Shi
pyar
d in
Sai
nt P
eter
sbur
g.
2011
— R
usat
om
Ser
vice
JS
C
(a s
ubsi
diar
y o
f th
e C
onc
ern)
tha
t la
ter
beca
me
an in
tegr
ato
r o
f th
e se
rvic
eo
ffer
of
Ro
sato
m S
tate
Co
rpo
rati
on
at
all s
tage
s o
f th
e V
VE
R r
eact
or
base
d N
PP
life
cycl
e ab
road
.
Dec
embe
r 12,
20
11 —
Vla
dim
ir P
utin
, Cha
irman
of
the
Rus
sian
Fe
dera
tio
n G
ove
rnm
ent,
to
ok
part
in
the
pow
er a
scen
sio
n ce
rem
ony
at
the
Kal
inin
NP
P p
ow
er u
nit
No
. 4 t
o s
cale
it
up t
o 5
0%
of
the
nom
inal
val
ue.
2014
— A
tom
ener
gosb
yt J
SC
(a
sub
sidi
ary
of
the
Co
ncer
n) w
on
the
tend
ers
for
the
stat
us o
f th
e su
pplie
r o
f la
st r
eso
rt o
f th
e K
ursk
, S
mo
lens
k, T
ver,
and
Mur
man
sk
Obl
asts
.
198
3 —
Ato
men
ergo
rem
ont
JS
C
(a s
ubsi
diar
y o
f th
e C
onc
ern)
was
cre
ated
as a
spe
cial
ized
rep
air
org
aniz
atio
n o
f th
eR
ussi
an n
ucle
ar in
dust
ry.
198
3 —
Ato
mte
chen
ergo
JS
C(a
sub
sidi
ary
of
the
Co
ncer
n) w
as c
reat
edas
a s
peci
aliz
ed e
ngin
eerin
g en
terp
rise
perf
orm
ing
tech
nica
l sup
ervi
sio
n,
com
mis
sio
ning
and
sta
rt-u
p te
stin
g o
f ne
w N
PP
po
wer
uni
ts.
2016
— t
he w
orld
’s u
npar
alle
led
pow
er
unit
wit
h B
N-8
00
fas
t br
eede
r re
acto
r o
f th
e in
dust
rial c
apac
ity
leve
l(B
elo
yars
k N
PP
po
wer
uni
t N
o.4
) w
asco
mm
issi
one
d.
2016
— a
ll-ti
me
high
po
wer
out
put
was
rea
ched
by
Rus
sian
NP
Ps
—19
6.4
bln
kW
h.
2017
— t
he w
orld
's fi
rst
3+
gene
rati
on
pow
er u
nit
was
com
mis
sio
ned
wit
h V
VE
R-2
00
reac
tor —
po
wer
uni
t N
o.1
of
the
—N
ovo
voro
nezh
NP
P-2
.
Dec
embe
r 24,
199
9—
Vla
dim
ir P
utin
, Cha
irman
of
the
Rus
sian
Fe
dera
tio
n G
ove
rnm
ent
held
a m
eeti
ng
on
the
nucl
ear
pow
er in
dust
ry is
sues
at
the
Leni
ngra
d N
PP
(S
osn
ovy
Bo
r).
Sta
te-O
wne
d E
nter
pris
e “R
ussi
an
Sta
te C
onc
ern
for
Pro
duct
ion
of
Ele
ctric
and
The
rmal
Ene
rgy
at
Nuc
lear
Po
wer
Pla
nts”
was
est
ablis
hed
(Ro
sene
rgo
ato
m C
onc
ern
Sta
te-O
wne
d E
nter
pris
e (S
OE
)) .
The
Co
ncer
n co
mpr
ised
8 n
ucle
ar p
ow
er
plan
ts in
Rus
sia.
07.0
9.19
92Se
ptem
ber 8
, 20
01
In a
cco
rdan
ce w
ith
the
Fede
ral
Go
vern
men
t D
irect
ive
No
. 12
07-
r o
f S
epte
mbe
r 8
, 20
01,
star
ting
on
Apr
il 1,
20
02
, wit
h th
e in
tent
ion
to im
pro
veo
pera
ting
effi
cien
cy a
t nu
clea
r pl
ants
, R
ose
nerg
oat
om
Co
ncer
n S
OE
was
re
org
aniz
ed in
to a
gen
erat
ing
com
pany
(R
ose
nerg
oat
om
Co
ncer
n F
SU
E)
by
mer
ging
wit
h al
l nuc
lear
pla
nts,
bo
th in
ope
rati
on
and
unde
r co
nstr
ucti
on,
en
surin
g th
eir
ope
rati
on
and
sci-
tech
supp
ort
.
10 N
PP19
6.4bl
n kW
h
Stan
isla
v A
ntip
ov
of
CE
O o ne
rgo
ato
mR
ose
n ern
Co
nce
Serg
ey O
bozo
v —
act
ing
CE
O o
f R
ose
nerg
oat
om
eC
onc
ern
FS
UE
. S
ince
Sep
tem
ber
20
06
–b
CE
O o
f th
e C
onc
ern
o
Eric
Poz
dysh
ev —
D
irect
or
of
the
Co
ncer
n
Ale
xand
er L
oksh
in —
ac
ting
CE
O o
f R
ose
nerg
oat
omm
Ro
sene
rgo
ato
mmC
onc
ern
FS
UE
Yevg
eny
Rom
anov
—
CE
O o
f th
eC
onc
ern
Ole
g Sa
raye
v —
P
resi
dent
of
oR
ose
nerg
oat
om
oC
onc
ern
FS
UE
S
And
rey
Petr
ov —
CE
O, R
ose
nerg
oat
om
ot
Co
ncer
n JS
Cn
Sec
ond
-tim
e C
EO
Yevg
eny
Igan
tenk
o —
C
EO
— V
ice
Pre
side
nt
of
Ro
sene
rgo
ato
m
Co
ncer
n
9.8
7
PO
WE
R G
EN
ER
ATIO
N
FOR
25
YE
AR
S, B
LN K
WH
177.
5
187.
439
9.1
527.
653
6.3
616
.7
Ro
sto
v N
PP
Bal
ako
vo N
PP
Kal
inin
NP
P
Sm
ole
nsk
NP
P
Kur
sk N
PP
Bili
bino
NP
P
Leni
ngra
d N
PP
Ko
la N
PP
No
vovo
rone
zh N
PP
Bel
oya
rsk
NP
P
726
.68
59.1
971
.6
RO
SEN
ER
GO
ATO
M IN
NU
CLE
AR
P
OW
ER
IND
UST
RY
FO
R 2
5 Y
EA
RS
(HIS
TOR
ICA
L B
AC
KG
RO
UN
D)
Sta
rt-u
p o
f th
e w
orld
's fi
rst
nucl
ear
pow
er p
lant
in O
bnin
sk (
indu
stria
l el
ectr
icit
y w
as g
ener
ated
by
a nu
clea
r po
wer
rea
cto
r fo
r th
e fir
st t
ime
ever
).
HIS
TOR
Y O
F R
EA
CTO
R
LAU
NC
HE
S A
ND
SH
UTD
OW
NS
OF
ALL
RU
SSIA
N N
PP
S O
VE
R 6
3 Y
EA
RS
PO
WE
R A
WA
RD
S20
16
25 Y
RS19
92
2015
His
toric
alm
axim
um
CA
PAC
ITY
FA
CTO
R IN
CR
EA
SED
25 P
OW
ER
U
NIT
S SE
RV
ICE
LIF
E
EX
TEN
DE
D
7 N
EW
LY
CO
MM
ISSI
ON
ED
PO
WE
R
UN
ITS
52.6
%85
.9%
BN-8
00O
cto
ber,
31
Bra
nd-n
ew p
ow
er u
nit
No
. 4
of
the
Bel
oya
rsk
NP
P w
ith
BN
-80
0 f
ast
bree
der
reac
tor
was
put
into
co
mm
erci
al
ope
rati
on
On
Oct
obe
r 4
Rus
sia'
s no
rth-
ernm
ost
cit
y o
f P
evek
(Chu
kot-
ka A
uto
nom
ous
Dis
tric
t)
host
ed t
he c
eleb
rati
ons
de
vote
d to
pilo
t sh
eet
pilin
g in
th
e ba
sis
of
the
ons
hore
in
fras
truc
ture
fo
r th
e un
ique
flo
atin
g nu
clea
r po
wer
pla
nt.
Aug
ust,
5
Po
wer
uni
t N
o. 1
of
the
No
vovo
rone
zh N
PP
-2 w
as
pow
ered
up
and
fed
the
nati
ona
l ene
rgy
syst
em w
ith
first
24
0 M
W
VVER
-120
0
AC
HIE
VM
EN
TS A
ND
RE
SULT
S O
F 20
16
Dec
embe
r – a
cer
tific
ate
was
si
gned
of
the
float
ing
nucl
ear
pow
er p
lant
rea
dine
ss f
or
nucl
ear
fuel
load
ing.
Bel
oyar
sk N
PP
Nov
ovor
onez
h N
PP
Floa
ting
N
ucle
ar P
ower
P
lant
22,
5
3,5
33,
5 ti
mes
num
ber
of
safe
ty
inci
dent
s at
Rus
sian
NP
Ps
decr
ease
d
tim
es n
umbe
r o
f vi
ola
tio
ns a
t R
ussi
an
NP
Ps
decr
ease
d
tim
es a
vera
ge c
olle
ctiv
e do
se
leve
l of
all N
PP
s de
crea
sed
18 tim
es c
ont
amin
ated
was
te w
ater
di
scha
rge
decr
ease
d
10 no e
vent
s ab
ove
Lev
el 1
of
the
Inte
rnat
iona
l Nuc
lear
Eve
nt
Sca
le (
INE
S)
tim
es e
mis
sio
ns a
nd
disc
harg
es o
f ra
dio
acti
ve
subs
tanc
es in
to e
nviro
nmen
t de
crea
sed
tim
es a
tmo
sphe
ric e
mis
sio
ns
of
pollu
tant
s de
crea
sed
SAFE
TY S
TAN
DA
RD
S
Rosenergoatom / Annual report / 2016 25 years of safe operation
2 2016 CALENDAR OF KEY EVENTS
MARCH JUNE JULY AUGUST
23.03
10 employees of the Concern and its subsidiary companies became winners and fi nalists of the industry-wide contest for Rosatom Man of the Year 2015.
21.04
Rosenergoatom and Electricite de France (EDF, France) signed a cooperation agreement as part of the WANO Main Governing Board meeting in Saint Petersburg.
28.04
The Project Offi ce of the International Personnel Training Center was opened at the Novovoronezh NPP.
03.06
Rostekhnadzor license was granted for power unit No. 1 construction at the Kursk NPP-2.
25.07
Victor Ignatov was appointed Director of the Kalinin NPP (previously—Director of the Balakovo NPP).
25.07
Valery Bessonov was appointed Director of the Balakovo NPP (previously—Chief Engineer of the Balakovo NPP).
05.08
Power unit No. 4 of the Beloyarsk NPP with the fast breeder reactor BN-800 started operation at 100 % capacity level.
17.08-01.09
Comprehensive 15-day trial operation of the Beloyarsk NPP power unit No. 4 at the nominal power level.
APRIL
24.06
Murmansk Oblast Government, Rosenergoatom Concern JSC and AtomEnergoSbyt JSC signed an agreement for long-term cooperation and the Murmansk Oblast energy complex development.
x10
3
26.10
Novovoronezh NPP-2 power unit No. 1 was brought to 100 % capacity.
31.10
Brand-new power unit No. 4 of the Beloyarsk NPP with BN-800 fast breeder reactor was put into commercial operation.
Rosprirodnadzor approved the international public environmental expert statement on the safety of the Leningrad NPP-2 power units No. 1 and No. 2 under construction.
SEPTEMBER NOVEMBER
21.09-23.09
Brand-new power unit No. 4 of the Beloyarsk NPP passed an emergency drill complex involving the NPP emergency response team (NPP ERT).
04.10
Pevek (Chukotka Autonomous Okrug) hosted the celebratory sheet piling in the basis of the onshore infrastructure for the Academician Lomonosov Floating Nuclear Power Plant.
13.10
Rostekhnadzor license was granted for construction of the Kursk NPP-2 power unit No. 2.
Experts of the Concern its branches, Rostov and Novovoronezh NPPs, became winners of the Russian Federation Government Sci-Tech Award of 2016.
26.12
The certifi cate of readiness was signed for nuclear fuel loading on the Academician Lomonosov Floating Power Unit and the dockside.
OCTOBER
DECEMBER
08.12
The Balakovo and Novovoronezh nuclear plants became Rosenergoatom Concern's best NPPs in terms of safety culture, according to the results of 2016.
23.12
The consortium of Rosenergoatom Concern JSC and Isotope JSC signed a contract stipulating production and supply of Co-60 isotope to Nordion (Canada) until 2034.
25.12
Final shut-down of the Novovoronezh NPP power unit No. 3 was performed for its further decommissioning.
1,355,827
1,470,670
1,521,133
1,614,0942016ACTUAL
2015
2014
6.75
7.09
7.85
7.97
396.0
565
505.6
498.04
1,181,245
1,298,091
1,329,640
1,389,225
9,238
13,922
- 1,783
10,605
154,191.0
121,932.6
132,596.6
128,975.16
37,492
37,179
35,248
35,3947
671,517
671,517
793,123
PLAN
196.4POWER GENERATION, BLN KWH
NET ASSET VALUE, MLN RUBLES
ASSET VALUE, MLN RUBLES
REGISTERED CAPITAL, MLN RUBLES
INVESTMENTS IN EQUITY, MLN RUBLES
NET PROFIT, MLN RUBLES
2016ACTUAL
2015
2014
PLAN
FEDERAL BUDGETTAXES PAID, MLN RUBLES
CHARITABLE CONTRIBUTIONS, MLN RUBLES
AVERAGE HEADCOUNT, PERS.
LABOR PRODUCTIVITY, THOUSAND RUBLES/PERS.
18,274
18,169
21,986
6,938
6,504
8,203
180.5
195.2
195.21
196.42016ACTUAL
PLAN
2015
2014
KEY PERFORMANCE INDICATORS
Rosenergoatom / Annual report / 2016 25 years of safe operation
4
1. The FAS balance target power generation was specifi ed as the planned value.
2. The reason for reduced tax payments to local budgets is a decrease in personal income taxes in the territories where the con-
struction of new power units was completed (including the Beloyarsk NPP), as well as the revision of the cadastral value of land plots in all territories where NPPs are located.
3. A drop in the actually accrued profi t tax versus 2015 is primarily caused
by an upsurge of the expenses for technical connection of generating facilities to power grids in 2016 versus 2015 by 31.9 bln rubles.
4. A decrease in the indicator value versus the plan in 2016 is caused by incomplete use of provisions
83.1%
48.9%
51.3%
37.0%
41.0%5
0
0
0
0
105,607
103,616
84,600
105,583
686
362
391
395
253,215
263,757
276,873
282,036
6,867
7,125
9,264
189
139
562
4,280
4,401
4,463
9,325
5,215
1,0333
8,632
6,237
6,891
CAPACITY FACTOR, %
GROSS PROFIT, MLN RUBLES
REVENUE, MLN RUBLES
NET EXPORTS REVENUE, MLN RUBLES
ACCRUED DIVIDENDS, MLN RUBLES
EBITDA MARGIN
BUDGETS OF THE RUSSIAN FEDERATION CONSTITUENT ENTITIES
LOCAL BUDGETS PERSONAL INCOME TAX
PROFIT TAX PAYMENT TOTAL VOLUME OF PROFIT TAX PAYMENTS ACCRUED, MLN RUBLES
2016ACTUAL
PLAN
2015
2014 81.6%
85.95%
81.65%
83.1%
transferred in favor of Atomenergo-prom JSC – a responsible participant in the consolidated group of taxpayers for the purpose of profit tax payment
5
(planned expenses incurred in full volume).
5. A higher EBITDA margin value if compared to the plan for 2016 was caused by higher revenues and lower expenses of Rosener-goatom Concern JSC.
6. The fulfi lment of Rosenergoatom Concern JSC investment program of 2016 by 97 % as refers to investment in equity is related to the diversion of the investment re-source that was earlier planned for investment in equity, repayment of
the principal amount of the loan for optimization of expenses for repayment of interest on loans.
7. Information on the reasons for a decrease in the headcount may be found in Section 3.1-HR Policy.
11
2
43
23
1234
4
3456
1
2
3
4
3
2
13
4
3
12
4
321
POWER GENERATION AT ROSENERGOATOM CONCERN JSC, BLN KWH
LEGEND
SMOLENSK NPP 22.312
KURSK NPP 27.489NOVOVORONEZH NPP 15.048
BALAKOVO NPP 33.610
BELOYARSK NPP 8.399
LENINGRAD NPP 28.293
KOLA NPP 9.837
KALININ NPP 27.154
27.1INSTALLED CAPACITY *
GW
* Excluding Novovoronezh NPP-2 power unit No. 1 (in pilot operation as of as of December 31, 2016), including Novovoronezh NPP power unit No. 3 (finally shut down in December 2016)
Power genera-tion between January and December 2016
New power units construction
Areas of presence
7.2327.3847.695
5.7426.1407.5888.016 3.239
3.2267.6130.968
9.2338.265
6.501
8.379
9.278
8.2967.656
4.6093.790
7.1316.0297.6267.505
2.274
7.3297.097
5.5397.187
2.2192.7592.584
ROSTOV NPP 24.0
BALTIC NPP
Rosenergoatom / Annual report / 2016 25 years of safe operation
6
1234
35 196.4OPERATING POWER UNITS
POWER UNITS UNDER CONSTRUCTION
POWER GENERATION AT CONCERN’S NPPSBLN KWH
8
FTNPPBILIBINO NPP 0.221
18.3% SHARE OF CONCERN'S NPPS IN TOTAL POWER GENERATED IN THE RUSSIAN FEDERATION
1,049.9 0.0590.0450.0600.054
SHARE OF CONCERN’S NPPS IN POWER GENERATION
RUSSIA
East UES
European part
Urals UES
South UES
Volga UES
Northwest UES
Central UES
18.3%
0.5%24.3%
3.3%24.2%31.6%35.5%38.9%
POWER GENERATION IN RUSSIABLN KWH
7
9
6.6
ADDRESS BY BOARD OF DIRECTORS CHAIRMAN
ALEXANDER LOKSHIN,
Chairman of the Board of Directors, Rosenergoatom Concern JSC; First Deputy CEO for Operations Management, Rosatom State Corporation
Dear colleagues,
At present, the nuclear power industry remains one of the most important sectors of the Russian economy. Its smooth opera-tion is required to ensure that the country is energy independent and the national econ-omy steadily grows. Russia's energy strategy envisages further development of the nuclear power industry.
The nuclear power industry steadily ensures the energy security of the Russian Feder-ation in all scenarios of the national ener-gy consumption forecasts. Meanwhile, we understand that a large-scale program for development of the nuclear power industry and heat generation, created 10 years ago and aiming at signifi cant growth in energy consumption and accelerated retirement of generation sources, requires considera-ble adjustment. With this consideration in mind, a new version of the Russian Energy Strategy until 2035 was developed with a conservative scenario of no growth in energy consumption. At the same time, the objective of preserving and increasing the share of nu-clear power generation in the energy balance is met by replacing the retired nuclear power units with new ones.
Therefore, it becomes highly relevant and signifi cant to boost the effi ciency of the Concern's operations and competitiveness by introducing the Rosatom Production System, among other things. This is what the stra-tegic goals of Rosatom State Corporation are aimed at, and these goals lead all indus-try-specifi c enterprises: increasing the share in international markets, decreasing the prime cost and process time, creating new products for the Russian and international markets.
2016 was a year of great success for the Concern. Another all-time high was hit in terms of generated power, power start-up of held at an innovative power unit No. 1 of the Novovoronezh NPP-2-the world's fi rst power
unit of generation 3+, the fourth power unit was commissioned at the Beloyarsk nuclear power plant with a unique fast breeder reac-tor BN-800.
Among the key thrusts aimed at achievement of the set goals are increasing competitive-ness of new and operational power units of NPPs, and developing new business lines, by means of foreign operations enhancement, inter alia. Thus, the Concern formulated strategic goals and objectives in line with the goals of Rosatom State Corporation as part of the business plan for 2016-2018 and the updated development strategy until 2030.
The industry continues to prioritize safe operation of nuclear power plants, strict compliance with deadlines for commissioning of new power units. In doing so, we have to think about raising the competitiveness and effi ciency, developing new business products. One of the Concern's key objectives of pen-etrating new markets is to develop services for power units decommissioning, promote marketing activities and infrastructure solu-tions. The Concern has already made certain achievements in these areas, particularly, the revenues from new products of NPP servicing abroad in 2016 reached 6.6 bln rubles, which is 15 % higher if compared to the previous year.
Despite the facts that the set goals are ambitious and the competition is constantly getting tougher, I am sure that the Concern will further succeed in meeting a responsible objective of ensuring the energy security and economic development of Russia.
BLN RUBLESWERE THE PROCEEDS FROM NEW PRODUCTS OF NPP SERVICING ABROAD IN 2016, WHICH IS 15% HIGHER IF COMPARED TO THE PREVIOUS YEAR
Rosenergoatom / Annual report / 2016 25 years of safe operation
10
Dear partners,
I am pleased to present you the ninth integrated report of Rosenergoatom Con-cern. The Concern's public annual reports for many years have been focused on safe operation of nuclear power plants along with full compliance with occupational health and safety standards and rules. This year, in addition to the traditional focus, the re-port also highlights the 25th anniversary of the Concern and sustainable development management. The report has been prepared in compliance with the best Russian and in-ternational reporting practices, as well as the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines and the International Integrated Reporting Framework. The report describes key operation results achieved by the Concern in 2016, covers fi nancial, pro-duction, social and environmental aspects of activities, and sustainable development. The Concern management acknowledge their responsibility for ensuring consistency of the integrated report compiled by a large team of experts and managers.
While ensuring full compliance with prior-itized safety of nuclear power plants oper-ation, we successfully achieved key perfor-mance indicators of the Concern as a power engineering division of Rosatom State Corporation in 2016, and the year ended with good results. One of the highlights of the year is as follows: Russian power plants reached another all-time high in terms of generated power. In 2016 the output reached 196.37 bln kWh, which is higher than the Federal Antimonopoly Service tar-get of 1.2 bln kWh, or 0.6 %. The Concern's average capacity factor is at the world's
ADDRESS BY CEO
best level—83.1 %. The installed capacity of nuclear power plants increased to 27.1 GW. The share of nuclear plants in Russia's pow-er generation totaled 18.3 %.
The year's key events for the whole nucle-ar power industry were the commissioning of the fourth power unit at the Beloyarsk NPP with an innovative fast breeder reac-tor BN-800, and the power start-up of the fi rst power unit at the Novovoronezh NPP-2 with the VVER-1200 reactor of the next, post-Fukushima generation of 3+. Both power units have no peers worldwide and lay the basis for innovative development of the Russian nuclear power industry. These projects are a key competitive advantage of the domestic nuclear industry on the global stage, and their successful implementation is a pride of all Russian nuclear power in-dustry workers. In addition, the start-up and commissioning operations began in 2016 at the fi rst power unit of the Leningrad NPP-2, the Academician Lomonosov fl oating nuclear power plant being under construction was prepared for nuclear fuel loading, onshore infrastructure development operations are in full swing at the fl oating plant base in Pevek.
The repair campaign in the reporting year was fully completed with the desired qual-ity, optimization of the power unit repairs totaled 107 days, additional power output reached some 1 bln kWh. The Balakovo, Kursk, Kalinin and Leningrad NPPs achieved most considerable results in repairs expedi-tion.
Power units upgrade operations, including those as part of service life extension, play the most important role in achieving the
ANDREY PETROV,
CEO, Rosenergoatom Concern JSC
11
199.8Concern's record high output. So far, oper-ations on extending the service life of 25 NPP power units with the aggregate capac-ity of 17.2 GW are accomplished. The power units with extended service lives generated in total by the beginning of 2017 some 700 bln kWh. In 2016 the output of power units with extended service lives totaled about 85 % of all power generated by the Con-cern's NPPs.
In addition to its production highlights as an operator of nuclear power plants, the Con-cern continues active penetration into new markets and development of international partnership, meanwhile reaching the strate-gic goals of Rosatom State Corporation to increase the share in international markets, develop new products and enhance effi cien-cy of operations.
As for the international business segment of NPP Servicing Abroad and new products, such as the isotope business, provision of services in adjacent markets, the revenues grew some 11 % in 2016 (versus 2015), the orders portfolio—some 18 %. Another high-light of the year was successful implementa-tion of a most important innovative project of the Concern—construction of the Data Processing Center near the Kalinin NPP, with the fi rst stage to be commissioned in 2017.
The objectives of enhancing operational effi ciency and competitive ability, optimizing costs and eliminating production losses are successfully met with the use of Rosatom Production System (RPS). In 2016, the pro-gram for conversion from a power engineer-ing division of Rosatom to a RPS division was fully accomplished. System-wide deploy-
BLN KWHWAS SET AS POWER GENERATION TARGET FOR 2017
ment of the RPS is slated for 2017 not only at NPPs, but all other branch offi ces and subsidiary companies of the Concern.
The next year of 2017 is very important and responsible for Rosenergoatom team. It is the year of the company's 25th anniversary. We will have to face the challenges of fi rst criticality at the Leningrad NPP-2 power unit No. 1 and the Rostov NPP power unit No. 4, and the fl oating nuclear power plant, as well as to commission the Novovoronezh NPP-2 power unit No. 1. The power output target for 2017 is at least 199.8 bln kWh.
These ambitious goals require concert-ed, committed and strenuous efforts of the Concern's whole team. In 2017, we will continue taking persistent efforts to tackle national challenges of supplying Russian regions with power, creating innovative products on the domestic and global scale with absolute prioritization of safety and reliability of safe operation of nuclear plants.
OVERVIEW
1.1. General Information _______________________________________________________________________13
1.3. Corporate Structure _____________________________________________________________________ 15
1.4. Mission, Vision and Values _____________________________________________________________ 17
1.5. Business Model and Capitals ___________________________________________________________ 18
1.6. Risk Strategy and Management ______________________________________________________24
1.7. Situation in Power Industry _____________________________________________________________ 32
ROSENERGOATOM CONCERN JSC IS ONE OF THE LARGEST POWER GENERATING COMPANIES IN RUSSIA, AND RUSSIA’S ONLY OPERATOR (OPERATING COMPANY) OF NUCLEAR PLANTS.
In 2015, the Concern joined the Anti-Cor-ruption Charter of Russian Business in an initiative manner.
Membership in international organizations:
• International Atomic Energy Agency (IAEA)2;
• WANO – World Association of Nuclear Operators;
• Materials Ageing Institute (MAI) under the auspices of EDF;
• European Utility Requirements (EUR);
• Nuclear Energy Agency under the Or-ganization for Economic Cooperation and Development (NEA/OECD)3.
1.1. GENERAL INFORMATION
1. The reasons for changes in the equity holding structure are given in Section 4.1 - Corporate Governance. Material Changes in Size, Structure, or Ownership in Reporting Period.
2. The Russian Federation is an offi cial member of this organization with the Concern being its authorized representative.
3. The Russian Federation is an offi cial member of this organization with the Concern being its authorized representative.
Rosenergoatom Concern JSC (herein-after - the Concern) has integrated, as branch companies, operational nuclear plants, directorates of nuclear plants under construction, and the Capital Projects Implementation Branch Office, Science and Engineering Center, Pilot and Demonstration Engineering Center for Decommissioning, Technology Branch Office, Directorate for Construction and Operation of Floating Nuclear Power Plants (see Section 1.3).
The stockholders of Rosenergoatom Concern JSC are Atomenergoprom JSC (90.022%) and Rosatom State Corpora-tion (9.978%)1.
The Concern has joined the following charters and initiatives, and it is a member of the following associations
Pursuant to the resolution of the general meeting of the Concern dated July 17, 2014 (Minutes No. 8), the Concern jointly with TVEL JSC, Science and Innovations CJSC, Russian Nuclear Society Non-Governmental Organization, and the Association of Insti-tutions of Higher Education "Consortium of Supportive Institutions of Higher Education of Rosatom State Corporation" took part in setting up the association National Nuclear Innovation Consortium.
90.022 %of Rosenergoatom Concern JSC stocks are held by Atomenergoprom JSC
9.978 %of Rosenergoatom Concern JSC stocks are held by Rosatom State Corporation
Rosenergoatom / Annual report / 2016 25 years of safe operation
14
15
№ Company Stake, %
1 Atomenergoremont JSC 100
2 AtomEnergoSbyt JSC 100
3 EREC JSC 100
4 Baltic NPP JSC 100
5 IKAO JSC 100
6 Atomtrans JSC 100
7 Atomtekhenergo JSC 100
8 NPP RTC JSC 100
9 VPO ZAES JSC 100
10 CONSYST-OS JSC 100
11 Energoatominvest LLC 100
12 Rusatom Service JSC 96.7
13 Beloyarsk NPP-2 JSC 80
14 VNIIAES JSC 75
15 Termoxid PNF JSC 67
SUBSIDIARY COMPANIES
Participation in Atomtekhexport JSC (05.08.2016) and Potapovsky JSC (28.12.2016) was abandoned in 2016).
SUBSIDIARIES COMPRISE ROSENERGOATOM CONCERN JSC
15
21BRANCHESCOMRISE THE CONCERN
1.3. CORPORATE STRUCTURE
* The Russian Representative Offi ce in Lianyungang, PRC was liquidated in February 2016, the liquidation resolution was entered into the Unifi ed State Register of Legal Entities on February 14, 2017.
** On January 17, 2017, the Board of Directors resolved to liquidate the Science and Engineering Center from May 1, 2017.
HEADQUARTERS ROSENERGOATOM CONCERN JSC*
Affi liates ofRosenergoatom Concern JSC NPPs in operation
Affi liates ofRosenergoatom Concern JSC Directorates of nuclear plants under construction
Representative Offi ce of Rosenergoatom Concern JSC**
Affi liates ofRosenergoatom Concern JSC
• Balakovo NPP
• Bilibino NPP
• Beloyarsk NPP
• Rostov NPP
• Kalinin NPP
• Kola NPP
• Kursk NPP
• Leningrad NPP
• Novovoronezh NPP
• Smolensk NPP
• Russian Representative Offi ce in Lianyungang (People’s Republic of China)**
• Science-Research Center for Emergency Response at NPPs
• Directorate for Construction and Operation of Floating Thermal Nuclear Power Plants
• Technology Branch Offi ce
• Science and Engineer-ing Center
• Pilot and Demon-stration Engineering Center for Decommis-sioning
• Capital Projects Im-plementation Branch Offi ce
• Directorate of Baltic NPP (under construc-tion)
• Directorate of Kursk NPP-2 (under con-struction)
• Directorate of Nizhny Novgorod NPP (under construction)
• Directorate of Vo-ronezh NHP (under construction)
• Directorate of Ko-stroma NPP (under construction)
Rosenergoatom / Annual report / 2016 25 years of safe operation
ROSENERGOATOM CONCERN JSC IS ONE OF THE LARGEST POWER GENERATING COMPANIES IN RUSSIA, AND RUSSIA’S ONLY OPERATOR (OPERATING COMPANY) OF NUCLEAR PLANTS.
Rosenergoatom Concern JSC (hereinaf-ter - the Concern) has integrated, as branch companies, operational nuclear plants, direc-torates of nuclear plants under construction, and the Capital Projects Implementation Branch Offi ce, Science and Engineering Center, Pilot and Demonstration Engineer-ing Center for Decommissioning, Technology Branch Offi ce, Directorate for Construction and Operation of Floating Nuclear Power Plants.
The Strategy of the Concern as the power engineering division of Rosatom State Cor-poration is part and parcel of the business
strategy of Rosatom State Corporation, and hinges on three strategic goals of the State Corporation:
Increasing the share in international markets1
3
2 Reducing prime cost and accelerating processes
New Products for Russian and Interna-tional Markets
17 1.4. MISSION, VISION AND VALUES
Rosenergoatom Concern JSC sees its mission as supplying consumers with power and heat produced by the Concern NPPs, with guaran-teed safety as its top business priority.
The Concern’s core businesses are genera-tion of power and heat by its nuclear plants, and operation of nuclear plants, sources of radiation, nuclear material and radioactive substance storage sites pursuant to the pro-cedure set forth by legislation of the Russian Federation.
The Concern’s top priorities are energy se-curity and economic development of Russia, protection and safety of people, and environ-mental protection.
The Concern implements the following princi-ples during performance of its main activity on operation of NPPs:
• ensuring nuclear, radiation, technical, fi re and environmental safety, as well as labor protection;
• unconditional compliance with legislation of the Russian Federation, compliance with requirements of federal standards and rules for security, compliance with institutional standards;
• economic effi ciency of production of pow-er and heat at NPPs;
• safety culture improvement.
As an operator company, the Concern is fully responsible for ensuring nuclear and radiation safety at all stages of the NPPs life cycle, while facing a whole range of challenges related to location, design, construction, op-eration, and decommissioning of NPPs.
SAFETY
ONE TEAM
ACCOUNTABILITY
RESPECT
EFFICIENCY
ONE STEP AHEAD6VALUESTHE CONCERN’S ACTIVITY IS BASED ON CORPORATE VALUES WHICH ARE COMMON FOR THE ENTIRE NUCLEAR POWER INDUSTRY
Rosenergoatom / Annual report / 2016 25 years of safe operation
Capitals Value chain
FINANCIAL
PRODUCTION
INTELLECTUAL
HUMAN
SOCIAL CAPITAL AND GOODWILL
NATURAL
Key results
KEY PROCESSES
Operation of existing NPPs
Implementation of new NPP power units
construction projects
Sales of electricity and heat
Servicing of Russian design NPPs abroad
CONSUMER RELATIONS
WECM participants
AtomEnergoSbyt JSC
Regional heat markets
Servicing companies within Power
Engineering Division
DEVELOPMENT PROCESS
R&D organization and performance
Upgrade of existing NPPs and their service life
extension
Development of international activity
RELATIONS WITH KEY PARTNERS Construction, assembly, and repair organizations
and enterprises
Plants supplying and reprocessing nuclear fuel
Suppliers of systems, equipment
and materials
Engineering and design organizations
Research and development centers
Service companies
Management
Mission and Values
SECTION 2.1
SECTION 1.7
SECTION 2.6 2.7 3.3
GROSS PROFIT INCREASE, MLN RUBLES
EBITDA DECREASE, MLN RUBLES
AVERAGE HEADCOUNT DECREASE,PERS.
INTANGIBLE ASSETS VALUE INCREASE, MLN RUBLES
NPP INSTRUCTORS PASSED ADVANCED TRAINING COURSES, PERS.
ENVIRONMENTAL PROTECTION EXPENSES BY NPPS, MLN RUBLES
2%2016
2015 103,616
105,583
2016
2015 195.2
196.4
2016
2015 37,179
35,394
2016
2015 1,081.940
1,131.343
6%
4.6%
366
3,447
5%
1% 2015
2016 135,535
134,595
POWER GENERATION INCREASE, BLN KWH
1.5. BUSINESS MODEL AND CAPITALS
19
71% 35,394 1,131,343 351,388.030
The provisions available for the use by organizations during production of goods or rendering of services and received through financing (grants, debt and equity financing), or created as a result of operations or investments
Production facilities used by an organization for production of goods or rendering of services, including: buildings; equipment; infrastructure
The Concern’s partners: construction, installation and repair enterprises; design organizations, suppliers of nuclear fuel, systems and equipment
Organization’s intangible assets based on knowledge
Attitude of stakeholders to the Concern and its activities, including trust and readiness to cooperate
All renewable and non-renewable natural resources and processes that enable to create goods or services underpinning the organization’s past, present or future prosperity
7.97 mln rubles/pers. — labour productivity
3,152,797 — hours of training
Employees’ competencies, their skills and experience, as well motivation for innovations
bln rubles — equitly
operating powerunits
thousand rubles — intangible assets value
pers. — average headcount
Nuclear power industry support level
Shift in capitals
FINANCIAL SECTION 2.4
PRODUCTION SECTION 1.7 2.1
INTELLECTUAL SECTION 3.3
HUMAN SECTION 3.1
SOCIAL CAPITAL AND GOODWILL SECTION 3.5
NATURAL SECTION 3.4
95,131 mln rubles — borrowed funds
793,123 mln rubles — registered capital
1,389,225 mln rubles — net asset value
Rosenergoatom / Annual report / 2016 25 years of safe operation
20 ROSENERGOATOM CONCERN JSC DEFINES THE BUSINESS MODEL AS A SYSTEM ENSURING CREATION OF VALUE IN THE SHORT, MEDIUM AND LONG TERMS, AND AIMING AT ACHIEVEMENT OF STRATEGIC GOALS.
The Concern’s capitals are one of the key elements of the business model. During the production, commercial and other activities they evolve (increased, decreased, trans-formed, etc.), which leads to value creation in the medium and long term.
The Concern understands capitals as internal and external resources (tangible and intangi-ble assets) used in its activities. The business model specifi es six types of capitals used: fi nancial, production, human, intellectual, so-cio-reputational, and natural.
Integral gains or losses of capitals lead to increase or decrease of the value created by the Concern, therefore, we pay much atten-tion to management and enhancement of effi ciency of the available capitals use.
CONCERN’S CAPITALS AND RESOURCES CHARACTERISTICS (EXTERNAL AND INTERNAL)
Construction, assembly, and repair organizations and enterprises
Organizations and enterprises providing services for the Concern during construction and operation of NPPs.
The business model contains general de-scription of the Concern’s activities within the industry, and is provided as transforma-tion of input resources to tangible and mar-ketable results (stockholder value, products, and services). The business model refl ects basic resources and processes participating in the value chain.
The Concern’s value chain forms part of com-mon industry processes of Rosatom State Corporation organized in accordance with fuel and equipment life cycles.
The business model comprises:
• Accessible capitals;
• Management system aimed at maximally effi cient use of capitals;
• Value creation activities;
• Activity results and their input in long-term capital gains in the Concern, defi ned by the level of strategic targets achievement.
Plants supplying and reprocessing nuclear fuel
Enterprises supplying reactor fuel assemblies (FAs) to NPPs and accepting spent nuclear fuel for storage and reprocessing.
21
Suppliers of systems, equipment and materials
Primarily, industry-level enterprises that produce management and control equip-ment and systems for NPPs, as well as other suppliers of materials and equipment used at NPPs.
Engineering and design organizations
Organizations performing development of pre-project, project and detailed design documentation for construction of NPPs, as well as industry-level enterprises involved in design of reactor plants for new NPP power units, auxiliary equipment and its elements.
Research and development centers
R&D, engineering and design organizations of the nuclear power industry that perform the work related to sci-tech support of NPPs operation and aimed at enhancing reliability, safety, and feasibility, as well as companies that develop intellectual systems, hardware and software complexes, simulators, auto-mated process control systems, technical diagnosis systems, virtual modeling of NPPs for new projects.
Service companies
Companies majoring in provision of services to the electricity market players (System Op-erator, Trade System Administrator, etc.).
Finance
Banks and fi nancial institutions providing the Concern with fi nancial resources.
Staff
The open labor market providing the Concern with labor resources featuring the required competences represented in the market. However, specialized competences absent in the open market are formed by the Concern in-house.
Nature
First of all, water resources required in the power and heat production process at NPPs, and land plots for construction of new NPP power units.The Concern strives to further reduce the environmental impact of its activity.
Rosenergoatom / Annual report / 2016 25 years of safe operation
22
Key Processes
• Operation of existing NPPs – management of equipment, nuclear fuel, and the process of power and heat production for subse-quent marketing.
• Construction management of new NPP power units – formation of the Concern’s fi xed productive assets and infrastructure, from the investment plan to delivery of a fi nished asset for operation.
• Power and heat sale – embraces power sale in the wholesale electricity and capacity market (WECM) and interaction with end consumers of power and heat, including execution of a contract with the end con-sumer.
• Servicing of Russian design NPPs abroad - activities related to provision of services to foreign customers with a view to increase the Concern’s revenues through sale of ser-vices in external markets for Russian design power units.
Development Processes
• Organization/performance of R&D initiated by the Concern aimed at resolving long-term tasks of the Concern’s production and technical research activity to the extent of modernization of NPP power units design and construction processes, increase of service life of main equipment, implemen-tation of new materials and processes, and development of new reactor units.
• Modernization of existing NPPs includes all activities aimed at increasing operating per-formance of NPPs, subject to unconditional safety at all stages of their life cycle.
• Development of international activity con-sists of fi ve main blocks:
• Marketing – collection and analysis of infor-mation to determine parameters of effective demand, desired commodity (consumer) properties, target markets and consumers, and promotional channels.
PROCESSES
23
• Service development – the Concern’s activi-ty on forming a line of services with required consumer properties, approaches to pricing and interaction with target customers.
• Sales and contracting – corresponds to activity on service promotion, consumer search, and interaction with consumers up to the conclusion of a contract.
• Production (provision) of services – con-tains processes of contractual obligations discharge.
• After-sale service - provision of additional services to ensure competitive performance and establishment of long-term mutually benefi cial relations with consumers.
Products, Sales Channels, and ConsumersValue Creation for Stakeholders
The Concern uses sales channels for the sale of products (basic: power, capacity, and heat) to consumers.
As a result of its activities, the Concern generates a cash fl ow that is converted to profi t for stockholders and capital gains ultimately underpinning develop-ment of the company and the industry.
The information about the Concern’s key partners is given in 2014 Annual Report (page 31).
Rosenergoatom / Annual report / 2016 25 years of safe operation
24 1.6. RISK STRATEGY AND MANAGEMENT
THE STRATEGY OF CONCERN AS THE POWER ENGINEERING DIVISION OF ROSATOM STATE CORPORATION IS PART AND PARCEL OF THE BUSINESS STRATEGY OF ROSATOM STATE CORPORATION AND IS BASED ON PROVISIONS OF THE RUSSIAN FEDERATION ENERGY STRATEGY.
get profi tability level. At present, the Concern faces a unique window of opportunities when global energy markets switch over to the service oriented model of development.
Provision of services throughout the NPP life cycle is a top priority development area among most of the leading energy companies.
The Concern is competent in providing a wide range of services at each and every stage of the NPP life cycle. The Concern has a unique experience that provides it with the key competitive advantages, such as creat-ing the nuclear power infrastructure in the Russian Federation, providing the technical supervision services at Russian design power units, performing start-up and commissioning operations in Russia and abroad, operating and maintaining of power units at Russian NPPs, as well as references in their decom-missioning.
Therefore, the Concern sets itself a goal to fi nd new growth areas, and the example of foreign companies shows that diversifi cation of products and geography corresponds to similar trends in regional markets. This initiative aims at getting extra revenues through services provision to foreign NPPs and domestic enterprises involved in adjacent Russian industries.
CASE STUDY
Provision of services throughout the NPP life cycle is a top priority development area among most of the leading energy companies.
The Concern is one of the largest power generating companies in Russia, and Russia’s only operator (operating company) of nuclear plants.
The Russian power market features low rates of energy consumption growth, which will reach 0.8-1% a year between 2016 and 2022. Meanwhile, according to the estimates of industry experts, there are surplus capacities of more than 20 GW.
In addition, the government approved a long-term strategy for end consumer support by shaping the tariff according to the “infl a-tion minus” principle, while the tariff growth outran infl ation by 2 percentage point on average between 2007 and 2016. Moreover, competitive strength of combined heat and power plants was increased: LCOE difference between CHPPs and NPPs reduced against the background of natural gas price growth deceleration and further shortening of CHPP construction time.
The current situation in the Russian market requires that the Concern, on the one hand, improves the effi ciency of capital projects, including optimization of NPP construction costs and schedule while ensuring a proper safety level, and on the other hand, reduces operating expenses in order to keep the tar-
25
1 2 3
MAJOR CHALLENGES IN RUSSIAN MARKET
In addition, the Concern updated its Strategy that now stipulates not only enhancement of electricity and capacity production effi ciency, but also development of new products for the domestic and international markets.
The Concern’s Strategy envisages achievement of the following goals.
Several macroeconomic trends have been changing in Russia and globally over the recent 2-3 years.
The Concern’s activities in traditional markets have considerably changed, particularly:
• Slow power consumption growth rate;
• Increasing capacity surplus in the UES of Russia;
• State policy of end user support (shaping of tariffs according to the “infl ation minus” principle);
• Development of technologies for other types of power generation that make com-petition more intense.
In a somewhat different environment, Rosa-tom State Corporation updated its strategic goals in 2016.
Strategic Goals of Rosatom State Corporation
Increasing the share in inter-national markets.
Creating new products and services for the domestic and international markets.
Reducing the prime cost and speeding up the processes.
KEY AREAS OF ROSENERGOATOM CONCERN ACTIVITIES IN LINE WITH STRATEGIC GOALS OF ROSATOM STATE CORPORATION
New products for Russian and international markets
• Services for various types of generating facilities
• Isotope products output
• DPC development
• Decommissioning of NPP power units and RAW handling
• Electricity distribution
• Operations improvement, maintenance, repair, personnel, purchases
• NPP construction effi ciency improvement
• Equipment upgrade
• Services throughout the whole NPP life cycle
• Nuclear infrastructure creation and development services
• Decommissioning of NPP power units
Reducing prime cost and accelerating processes
Increasing the share in international markets
Rosenergoatom / Annual report / 2016 25 years of safe operation
26 CONCERN’S MAJOR GOALS AND OBJECTIVES, REPORTING PERIOD CONTRIBUTION TO STRATEGY IMPLEMENTATION
• An integrated survey of the power unit No. 2 equipment, buildings and structures was performed (Stage 1 completed) as part of the contract for the Metsamor NPP service life extension.
• The stages of work slated for 2016 to ensure technical support of the Bushehr NPP power unit No. 1 operation have been completed in Iran. The spare parts were supplied, consultation services and support provided for the scheduled maintenance of the Tianwan NPP power units No. 1 and No. 2. The commissioning of the Belarusian NPP continues (for details see Section 2.7 - International Business and New Products).
2. Reducing Prime Cost and Accelerating Processes
• With a view to decrease costs and increase effi ciency of the management processes related to Russian and foreign NPP per-sonnel training, a process was initiated to create the Technical Academy in the Power Engineering Division on the basis of Rosatom Central Institute for Continu-ing Education and Training (CICE&T), NPP training centers, Atomtekhenergo JSC and Atomenergoremont JSC. Establishment of the Technical Academy will be completed in late 2018;
• Also see Section 2.4 (Cost Management in 2016), the Production System Implementa-tion section; information about processes acceleration can be found in the Best RPS projects and Improvement Proposals of 2016 (with Economic Effect) sub-section,
RETAINING CURRENT POSITIONS IN TRADITIONAL MARKETS DURING THE SLOWDOWN IN RUSSIA’S ECONOMIC GROWTH REQUIRES CONSTANT IMPROVEMENT OF PROCESSES AND TECHNOLOGIES IN ALL SECTORS OF THE NUCLEAR POWER INDUSTRY, AND DEVELOPMENT OF NEW BUSINESS LINES.
Therefore, the Concern’s key business lines are as follows:
1. Increasing Share in International Markets
NPP servicing abroad was performed ac-cording to the development strategy of the power engineering division until 2030, as part of the sector for Russia’s Nuclear Power Industry Complex Development.
Servicing of Russian design NPP power units abroad at stages of assisting in the nuclear infrastructure creation in newcomer coun-tries, personnel training, commissioning, maintaining operation and services.
In the reporting period, positions were strengthened in the international market of Russian design NPPs servicing.
• Such operations involved 11 countries of the world: Armenia, Belarus, Bulgaria, Czech Republic, Slovakia, Hungary, Lithua-nia, Iran, China, India, Bolivia.
• The Concern is a market leader in Armenia, Iran and Bulgaria.
• One of the most important events of the year was a successful accomplishment of the three-year project to substantiate service life extension of the Kozloduy NPP power unit No. 5 as part of the contract between the Kozloduy NPP (Bulgaria) and the Consortium of Rusatom Service JSC - Rosenergoatom Concern JSC - Electricite de France.
27 Energy Saving and Energy Effi ciency Im-provement, Energy Resources Consumption in 2016.
3. New Products for Russian and International Markets
А. Isotope Business
At present, Co-60 is produced at the Len-ingrad NPP. As the operation period expires in 2025 for the Leningrad NPP power units with RBMK reactors, a project was launched in 2016 to organize Co-60 production at the Smolensk and Kursk NPPs with a view to preserve and increase the share of Co-60 production in the international market. More-over, a new contract was signed in December 2016 with Nordion (Canada) for Co-60 supply until 2034.
In November 2016, the Council for Develop-ment and Globalization of Rosatom State Corporation approved a project to arrange production of unique Co-60 with a high specifi c activity (over 300 Ci/g) for manu-facturing of gamma knife devices used in nuclear medicine. The Concern plays a key role in this project as the provider of cobalt target irradiation services for BN reactors of the Beloyarsk NPP. The project will enable the Concern to improve cost-effectiveness of BN-600 and BN-800 reactor units.
B. Construction of Data Processing Centers at NPPs (Pilot Project at Kalinin NPP)
A key event of 2016 was implementation of one of the Concern’s major project projects - construction of the Data Processing and Storage Center of Rosenergoatom Concern JSC (DPC). The Power Engineering Division’s DPC project is included into the list of signifi -cant projects of Rosatom State Corporation.
The DPC objective is to implement a proprie-tary disaster-proof system for the production process data processing and storage, as well as to diversify the business portfolio, and
bring the Concern to a new development area of data processing and storage services. The DPC project is implemented in partner-ship with Rostelecom PJSC being an anchor tenant of the DPC location premises.
The DPC stipulates placement of up to 4,800 racks as part of the fi rst stage of the DPC construction, which makes it Russia’s largest data processing center, and one of the larg-est worldwide.
In 2016, construction of all facilities within DPC Stage 1 was in line with the approved schedule. The overall construction readiness of the DPC Stage 1 exceeded 60% according to the results of 2016.
C. Marketing Business
In 2016, AtomEnergoSbyt JSC, a subsidiary of Rosenergoatom Concern JSC, continued operations under the status of the ‘last resort supplier’ of power in the Kursk, Tver, Smolensk, and Murmansk Oblasts through established branches and standalone struc-tural units. Net electricity supply in 2016 totaled 16.04 bln kWh, which is 5% above the level of 2015 (15.38 bln kWh). The growth was observed among industrial and equivalent consumers (13% up versus 2015), as well as population (14% up versus 2015).
Rosenergoatom / Annual report / 2016 25 years of safe operation
28 RISK MANAGEMENT
THE CONCERN’S RISK MANAGEMENT ACTIVITIES ARE AIMED AT ACHIEVEMENT OF STRATEGIC GOALS THROUGH INTEGRATION OF THE RISK MANAGEMENT INTO PLANNING AND DECISIONMAKING.
Major Principles of RMS
• Compliance with the Concern's strategy (risk assessment is primarily carried out in view of infl uence on strategic goals);
• Participation of each and every employee of the Concern in risk management in the area of his/her job duties;
• Periodical reassessment of risks;
• Integration into the key planning pro-cesses (strategic planning, mid-term planning, investment planning) for the most complete accounting for risks in the activities;
• Integration of the existing practices for management of certain risk categories;
• Transparency of the risk management process, and an open dialog on possible consequences;
• Accounting for mutual infl uence of all risk categories in every sphere of the Con-cern's activities;
• Reliable system of information exchange among structural units;
• Constant development with a view to achieve the targets faced by the Concern.
The Concern’s activities, as those of the bulk of major companies, are connected with various risks – production, market, regulatory and others. The risk management system shall support implementation of the strategy and the business plan at all levels of man-agement: from workshop to CEO, ensuring timely identifi cation and evaluation of risks for further effi cient risk mitigation.
Due to specifi c nature of its activities, the Concern pays special attention to the risks of nuclear, radiation, occupational and fi re safety, physical protection of NPPs, therefore, any decision related to the Risk Management System functioning is taken with due account of the requirements stipulated by the stand-ards applicable to all kinds of safety, as well as uninterrupted operation and streamlining of the safety management system as part of the Concern’s overall management system.
Owing largely to these efforts, no major adverse risk consequences were observed in 2016.
Principles of and Approaches to Organization of Risk Management System and Internal Regulatory Documents
Development of the Risk Management Sys-tem (RMS) by the Concern was performed according to the Risk Management Policy.
* Hereinafter – indication of GRI Standards
*102-29
29
RMS Goals and Objective
• timely identifi cation of the emerging risks that infl uence achievement of the Con-cern’s goals;
• better understanding of risks and their mutual interrelation;
• determination of the risk owners and their responsibility;
• development and introduction of the pro-cedures required for constant monitoring of risks.
Pattern of Risk Management Compe-tence Distribution among Management and Control Bodies
The Concern’s RMS is structured according to the following key principles:
• Concern's risk management system corre-sponds to the existing operation model;
• Risk management is carried out by risk owners;
• Functions of risk treatment measures, as well as their execution and effi ciency control, are performed by several governing bodies of the Concern;
• Organization of the risk management system includes three management levels: strategic, tactical, and operational.
Major Events of 2016 and Prospects for 2017
The risk management process is cyclical, therefore, in 2016, the Concern continued routine improvement of the risk management system seeking further integration with all main processes, primarily with investment planning and budgeting.
As part of the mentioned activities, the Risk Management Policy and the List of Key Risks were updated in a scheduled manner, the aggregate infl uence of risks (including the risks of considerable changes in the glob-al commodity markets) on major fi nancial and economic indicators was assessed, the scheduled monitoring of risk management measures was accomplished.
102-30
102-29
Rosenergoatom / Annual report / 2016 25 years of safe operation
30
increase
decrease
no signifi cant changes
1
2
POTENTIALLY CONSIDERABLE RISKS TO CONCERN’S GOALS ACHIEVEMENT
FURTHER DEVELOPMENT OF THE RISK MANAGEMENT SYSTEM IS SCHEDULED FOR 2017 DUE TO THE UPDATE OF METHODOLOGICAL AND REGULATORY SUPPORT WITH RESPECT TO RISK EVALUATION AND MANAGEMENT TECHNIQUES. THE LIST OF KEY RISKS AND THEIR OWNERS WILL BE UPDATED.
RISK CHANGES*:RISK OF DECREASE IN ELECTRICITY AND CAPACITY PRODUCTION VOLUME
CHANGES ARE CAUSED BY ENSURING FAILSAFE OPERATION OF POWER UNITS BEING COMMISSIONED
Risk factorsViolations, equipment failures resulting in full or partial unloading of the power unit, and NPP un-preparedness to meet production commitments.
Risk levelRisk level reduced. Introduction and application of the RPS for stream-lining of production activities al-lowed for the full elimination of the adverse factors impact in 2016.
Risk managementAll cases of upsets and failures in equipment operation were investi-gated pursuant to the established procedure. Corrective and preven-tive measures were developed. They are aimed at removal of the root causes of upsets and preven-tion of their repetition.
RISK OF UNFAVORABLE CHANGES IN MARKET PRICES
Risk factors• Price changes in the electricity
and capacity market (due to reduced electricity consumption, emergence of more economically viable generation in the market, deviation of prices for fossil fuel)
• Full or partial absence of de-mand for potential capabilities of NPPs due to specifi c require-ments of the system operator for the energy system operation mode.
Risk levelThe risk level is quite high, the risk was partially observed as the sys-tem operator limitations in 2016.
Risk managementThe risk depends exclusively on external factors. Risk hedging with the use of fi nancial instruments does not seem possible due to low market liquidity. For the purpose of risk reduction, energy distribution service providers are taking efforts to agree on repair times for net-work equipment with Federal Grid Company of Unifi ed Energy System JSC and Unifi ed Energy System Operator JSC.
* Column 2 – estimation and result of risk management in 2016, Column 3 – 2017 short-term and medi-um-term estimation.
31
3
4
3. RISK OF COUNTERAGENT’S FAILURE TO TIMELY DISCHARGE ITS OBLIGATIONS IN FULL
Risk factorsDeterioration of fi nancial and economic stability and payment discipline among counteragents.
Risk levelMedium
Risk managementThe risk management is carried out in several areas:• Reviewing claims related to
WECM non-payers;• Settling the debts of existing
WECM players in an out-of-court manner;
• Returning a portion of WECM receivables according to the results of tenders organized by the Russian Federation Energy Ministry to replace the suppliers of last resort;
• Applying the system of fi nancial guarantees in the wholesale market.
RISK OF GROWING COSTS AND EXTENDING TERMS OF NPPS CONSTRUCTION IN RUSSIA
Risk factors• Violation of obligations by
sub-contractors in relation to work schedules and quality.
• Violation of obligations by suppliers in relation to the equipment supplies schedule and quality.
Risk levelThe risk level is quite high, but it did not show up in 2016. Commer-cial operation of the Novovoronezh NPP-2 power unit No. 1 was behind schedule due to the malfunction of the generator (further replaced with a new one), commercial opera-tion started on February 27, 2017.
Risk managementFor the purpose of risk manage-ment, the system of management is under improvement for all stages of NPPs construction, starting from pre-design preparations and ending with power unit commis-sioning.Requirements for organization of the assembly and construction work monitoring system were developed and introduced at NPP construction sites. The require-ments ensure a unifi ed procedure at all sites for collection and analysis of data and information on assembly and construction work quality.
1 2
4
3
RISK MAP
SEN
SIB
ILIT
Y
PROBABILITY
Low
Low
Medium High
Med
ium
Hig
h
Rosenergoatom / Annual report / 2016 25 years of safe operation
32 1.7. SITUATION IN POWER INDUSTRY
ROSENERGOATOM CONCERN JSC IS ONE OF THE LARGEST POWER INDUSTRY COMPANIES WORLDWIDE AND THE ONLY OPERATOR OF RUSSIAN NPPS.
Major Trends in Global Economy and Macroeconomic Situation in Russia
In 2016, the global economy was infl uenced by preservation of the US and Chinese eco-nomic growth rates, as well as improvement of the economic environment in Russia and Brazil. Stabilization of international oil prices above 50 US dollars per barrel is a positive trend. Meanwhile, slowdown of the economic growth is observed in the European Union due to Brexit and elections in key EU mem-ber states.
The global economic growth totaled 3.1% in 2016, which is equal to the value of 2015. At the same time, the economy is expect-ed to grow 3.4% in 2017, and 3.6% in 2018. Forecast indicators correspond to last year’s estimates for 2016 and 2017 respectively. The forecast acceleration in the following two years is primarily connected with the im-provement of the situation in some emerging market countries and low income countries, which underwent considerable diffi culties in 2016. Together with that, a larger part of the forecast upsurge is underpinned by better prospects in the USA, China, Europe and Japan1.
The volumetric gain of global trade decreased from 2.7% in 2015 to 1.9% in 2016. It is fore-cast to reach 3.8% in 2017 and grow further to 4.1% in 20182.
The Russian economic environment was shaped in 2016 under the infl uence of con-tinued economic sanctions imposed by the EU and USA. Russia’s annualized net capital outfl ow dropped by 3.7 times in 2016 down to 15.4 bln US dollars, versus 57.7 bln US dollars in 20153. The GDP index remained negative and equaled -0.2% (2.6% lower than in 2015)4. Russia is constantly recovering from recession.
The industrial production index showed the year’s highest increment rate in December, having increased by 3.2%, and grew 1.5%5 in 2016 versus 2015%.
According to various estimates6, the Russian GDP is expected to go up to 1.1% in 2017. Moreover, the national GDP growth is antici-pated to continue in 2018 up to 1.2%.
Slight acceleration of the Russian economic growth enhances the urgency of new busi-ness lines development in the Russian Feder-
The project of the Beloyarsk NPP power unit No. 4 with BN-800 fast breeder reactor became the winner of Power Awards 2016 by the Power Magazine, one of the world’s most infl uential and recognized professional periodicals focused on the power industry.
1. World Economic Outlook Bulletin, January 2017 http://www.imf.org/external/russian/np/blog/2017/011617r.pdf
2. http://ac.gov.ru/fi les/publication/a/11720.pdf (page 3).
3. http://www.vestifi nance.ru/articles/80026.
4. According to Rosstat datahttp://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/accounts/#.
5. The data in the previous publication differs by the amount of changes related to introduction of international practices for evaluation of the housing services provided and consumed by landlords; evaluation of equity consumption based on its current market value; coordination of export and import data with balance of payments developed according to the practices of the Sixth Edition of the IMF’s Balance of Payments and International Investment Position Manual (BPM6).
6. http://economy.gov.ru/wps/wcm/connect/9056bb04-390c-47f9-b47f-8e3b061bc7b8/monitor1-12.pdf?MOD=AJPERES&CACHEID=9056bb04-390c-47f9-b47f-8e3b061bc7b8 (page 3).
2ndplace in the Generating Companies – Market Effi ciency rating compiled by the Non-profi t Partnership "Council for Organizing Effi cient System of Trading at Wholesale and Retail Electricity and Capacity Market" (NP Market Council) according to the results of 2016.
1.1 %ation and abroad. The main risk for economic prospects of the Concern is related to higher geopolitical tension. For additional informa-tion refer to Section 1.6 – Strategy and Risk Management.
Electricity and Capacity Market
The total installed capacity of the Concern’s NPPs reached 27.1 GW1 by the end of 2016, which is 11.5% of the total capacity of Rus-sia’s UES (for additional information refer to Section 2.1 - Generating Capacities. Develop-ing Generating Potential).
In 2010, the Concern made 1,915 contracts with consumers in the wholesale market in re-lation to 9 new NPP power units with liabilities for capacity supply to the wholesale market in the amount of some RUB 4.4 trillion (without VAT) from the sales of capacity of new NPP power units between 2011 and 2040.
Long-term competitive capacity auctions were held for the years of 2016, 2017, 2018 and 2019 in 2015, and for the year of 2020 in 2016. Bidden capacity of NPPs was fully con-tracted and would be sold in the respective period at market prices.2
In terms of installed capacity of NPPs and the amount of operating power units, the Concern holds the 2nd place in the world among leading global companies operating NPPs (1st place – EDF, France). In terms of the number of reactors in operation as of December 31, 2016, Russia takes the 5th place after France, the USA, Japan and China.
Power generation in Russia totaled 1,071.7 bln kWh in 2016, which is 2.1% more than in 2015. Russian UES power plants generated 1,048.3 bln kWh, or 2.1% more than in 20153.
IS THE EXPECTED GROWTH IN RUSSIAN GDP IN 2017
Power generation in Russia totaled 1,071.7 bln kWh in 2016, which is 2.1% more than in 2015. Russian UES power plants generated 1,048.3 bln kWh, or 2.1% more than in 2015.
1. Excluding the Novovoronezh NPP-2 power unit No. 1 being in pilot operation as of December 31, 2016.
2. Defi ned on the basis of the offtake with consideration of the capacity price component required for ensuring safe operation of NPPs (approved by Russian FAS).
3. http://so-ups.ru/index.php?id=press_release_view&no_cache=1&tx_ttnews[tt_news]=8055 ; http://so-ups.ru/index.php?id=press_release_view&no_cache=1&tx_ttnews%5Btt_news%5D=10404
Rosenergoatom / Annual report / 2016 25 years of safe operation
34
2012 2013 2014 2015 2016
1 2
5
4
3
15
France
13,10723,170
26,172
22
58 19
22,092 4
Units
Units3
Units2
Units
Units1Sites Sites
Sites
Sites
Sites
EDFÉLECTRICITÉ DE FRANCE
REAROSENERGOATOM CONCERN JSC
KOREA HYDRO AND NUCLEAR
POWERKHNP
EXELONCORPORATION
EXELON
35 10
25 624,185 gross
1322,912 gross
13,835 gross
63,13065,880 gross
Installed Capacity,Net MW(e)
Installed Capacity,Net MW(e)
Installed Capacity,Net MW(e)
Installed Capacity,Net MW(e)
Installed Capacity,Net MW(e)
NNEGCENERGOATOM
NNEGC
Russia
South KoreaUSA
Ukraine
27,127 gross
Day-ahead market Balancing market Regulated agreements Deregulated bilateral agreements
1.43
148.15
29.55
1.02
1.12
142.84
29.85
0.95
1.29
150.21
30.43
0.90
1.36
158.15
37.01
2.52
159.72
36.32
0.98
2015
419,022418,001405,899
157,199
182,810
82,405
182,439,51
195,214*
2014 2013
169,916132,465
182,162
147,423
83,12378,166
161,087.30 168,521.82
172,217* 180,475*
1. Hook-up of the Rostov NPP power unit No. 3 on December 27, 2014, Beloyarsk NPP power unit No. 4 on December 10, 2015, Novovoronezh NPP-2 power unit No. 1 on August 5, 2016, fi nal shut-down of the Novovoronezh NPP power unit No. 3 on December 29, 2016. Power generation data for 2013 pertain to 33 units, 2014 – to 34 units, 2015 – to 35 units.
2. Shin-Wolsong NPP power unit No. 2 commissioned in February 2015, Shin-Kori NPP power unit No. 3 – in January 2016. Power generation data for 2013-2014 pertain to 23 units, 2015 – to 24 units.
3. In March 2012, as a result of the merger with Constellation Energy, the number of Exelon power units grew from 17 at 10 sites to 22 at 13 sites. Power generation data for 2013 pertain to 17 units, 2014-2015 – to 22 units.
CONCERN’S ELECTRICITY SUPPLY STRUCTURE IN WECM IN 20102016, BLN KWHTOP 5 GENERATION (SUPPLY), GWH
TOP 5 COMPANIES: NUMBER OF REACTORS, INSTALLED CAPACITY AS OF LATE 2015
* In addition to delivery, the actual output is specifi ed for Rosenergoa-tom Concern JSC.
35
27.1GWIS THE INSTALLED CAPACITY OF ROSENERGOATOM CONCERN JSC IN 2016
ROSENERGOATOM CONCERN AND RUSSIA’S MAJOR POWER PRODUCERS IN 20142016
Company Power Generation, Bln KWh Installed Capacity, GW
2014 2015 2016 2014 2015 2016
Rosenergoatom Concern JSC 180.5 195.2 196.4 25.2 26.2 27.1
Gazprom Energoholding LLC4, 5 152.2 147.0 153.8 37.7 38.0 38.0
RusHydro JSC6 113.6 127.3 125.0 38.5 38.6 35.7
INTER RAO – Electric Power Plants7 131.6 140.7 133.8 29.1 34.9 32.5
T Plus Group8 58.4 56.5 55.3 15.7 15.3 17.5
Irkutskenergo PJSC9 53.9 46.9 49.3 12.9 12.9 12.9
ACTUAL POWER BALANCE INDICATORS OF RUSSIAN UES IN 20161
The main load in terms of ensuring demand for power in the Russian UES in 2016 was on combined heat and power plants (CHPPs) with the output of 614.1 bln kWh, which is equal to the amount of electricity produced at CHPPs in 2015. Hydropower plants output in 2016 equaled 178.3 bln kWh (11.3% more than in 2015). NPPs generated 196.4 bln kWh2 in 2016, which is 0.6% more than the amount of power generated in 2015. Captive power plants generated 59.5 bln kWh in 2016 (3.3% more than in 2015).3
The share of electricity produced by thermal power plants in the total power output de-creased from 59.8% in 2015 to 57.3% in 2016, hydropower plants – increased from 15.6% to 16.6%.
Increased power consumption by the Russian UES in 2016 was caused by the temperature factor: in January and Decem-ber 2016 the energy system encountered a considerable drop in the ambient air temperature, if compared to similar indica-tors of 2015, by 4.6ºС and 5.7ºС, respec-tively, and in the summer period with direct connection between the consumption level and temperature in July and August the ambient air temperature exceeded simi-lar indicators of 2015 by 2.3ºС and 3.0ºС, respectively.
Over many years, the Concern has held the leading position among Russian generating companies in terms of installed capacity and power generation.
1. http://so-ups.ru / fi leadmin / fi les / company / re-ports / ups-review / 2015 / ups_balance_analysis_2015q4. pdf page 39
2. 196.1 bln kWh – power generation without the Bilibino NPP located in the isolated energy region and supplying power to the retail market.
3. http://so-ups.ru / index. php?id=press_release_view&no_cache=1&tx_ttnews%5Btt_news%5D=10404 / .
4. http://www.gazenergocom.ru / press / news / 2017 / 02 / 215 / .
5. http://www.rushydro.ru / .
6. http://www.interrao.ru / activity / .
7. http://www.tplusgroup.ru / , http://www.fi nam.ru / analysis / newsitem / gruppa-t-ply-us-po-itogam-2016-goda-sokratila-vyrabotku-ele-ktroenergii-na-2-1-20170123-11045 / .
8. http://www.irkutskenergo.ru / .
9. http://energybase.ru / news / electric-power / potreble-nie-elektroenergii-v-energosisteme-irkutskoj-oblas-ti-v-2016-godu-2017-01-20.
Rosenergoatom / Annual report / 2016 25 years of safe operation
36
2015
2016
2014
Power Generation, Bln KWh
Rosenergoatom Concern JSC
Gazprom Energoholding LLC1
RusHydro JSC2
INTER RAO – Electric Power Plants3
T Plus Group4
Irkutskenergo PJSC5
Installed Capacity, GW
180.5152.2131.6113.658.453.9
26.238.034.938.615.312.9
27.138.032.535.717.512.9
195.2147.0140.7127.356.546.9
196.4153.8133.8125.055.349.3
25.237.729.138.515.712.9
279,528.3mln rubles –the actual revenues from elec-tricity and capacity sales in 2016
The actual amount of electricity produced by NPPs in 2016 equaled to 196.37 bln kWh. 196.15 bln kWh (99.89%) out of that amount was supplied to WECM and 0.22 bln kWh (0.11%) – to the retail market (Bilibino NPP output).
The planned NPP power output specifi ed in the Russian FAS balance target is 195.22 bln kWh. The additional NPP power output totaled 1.15 bln kWh, or 0.6%.
In 2016, the Concern supplied electricity in the WECM under regulated contracts, on the day-ahead basis, in the balancing market, and under non-regulated contracts. Capac-ity was supplied under regulated contracts, capacity sale contracts executed following the competitive selection of price quotes for
capacity sale, and capacity sale contracts of new NPP facilities. Meanwhile, payments for electricity and capacity supplied under reg-ulated contracts, and payment for capacity under capacity purchase and sale contracts with new power plant facilities were made at the tariffs (prices) set for the Concern by the Russian FAS for 2016.
The actual revenues from electricity and capacity sales equaled 279,528.3 mln rubles. The actual revenues exceeded the budget plan by 5,413.2 mln rubles or 2.0%.
The share of the Concern's NPPs in the domestic power output of 2016 by Russian regions (energy systems) is shown in Section 2.1 - Generating Capacities. Developing Gen-erating Potential.
1. gazenergocom.ru / press / news / 2017 / 02 / 215 / .
2. rushydro.ru.
3. interrao.ru / activity.
4. tplusgroup.ru,fi nam.ru / analysis / newsitem / grup-pa-t-plyus-po-itogam-2016-go-da-sokratila-vyrabotku-elektroen-ergii-na-2-1-20170123-11045 / .
5. irkutskenergo.ru,http://energybase.ru / news / elec-tric-power / potreblenie-el-ektroenergii-v-energo-sisteme-irkutskoj-oblas-ti-v-2016-godu-2017-01-20.
1,129.92rubles per MWh was the weight-ed average annual price of NPP generated electricity sales in the day-ahead market in 2016
ROSENERGOATOM CONCERN AND RUSSIA’S MAJOR POWER PRODUCERS IN 20142016
DISTRIBUTION RESULTS
37
201.1
FORECASTS AND DEVELOPMENT PLANS
Ambitious goals are set for the Concern in 2017, in terms of production, as well as fi nan-cial and economic indicators. As compared to 2016, it is necessary to increase the elec-tricity output by 2.4%, considerably improve labor productivity, additionally increase the adjusted free cash fl ow (AFCF) above the budget value by 5.8 bln rubles, while the tar-get level is 143.8% of the 2016 actual result.
In 2017, according to the resolution by the Strategic Council of Rosatom State Corporation, a new indicator is set for all divisions – Implementation of Actions at Assets under Construction / Equipment to Be Installed / Intangible Assets, %. This means the Concern has launched a program for optimization of the facilities and reserves of construction-in-progress, unused over 2 years, the equipment to be installed and not used for over 1 year, and intangible assets, with the total scope of 50 bln rubles for the coming three years. The efforts to be taken
as part of this program shall be organized in a systematic manner, and the volume of construction in progress shall be reduced by 19.5 bln rubles in 2017.
Development Plans for 2017
• taking into account the achieved level of cost reduction, ensure its maintenance and continue optimization work;
• launch a pattern of the global management system for operation, maintenance and re-pair on the basis of IBM Maximo for Nuclear Power;
• start using a management tool with the goal tree and the mechanism for operation-al management of outstanding issues and risks;
• ensure achievement of target values of key performance indicators.
BLN KWHIS THE STRATEGIC GOAL FOR RUSSIAN NPPS TO PRODUCE IN 2017
Rosenergoatom / Annual report / 2016 25 years of safe operation
38
KEY PERFORMANCE INDICATORS FOR 20172019
Item No.
KPI Name, UoM 2015 (Actual) 2016 (Actual) 2017 (Target) 2018 (Plan) 2019 (Plan)
1 Adjusted free cash fl ow, bln rubles
108.7 113.7 163.5 164.2 190.3
2 Investment program fulfi lment, %
99.75 98.6 100 100 100
3 Power generation at NPPs, bln kWh
195.2 196.4 201.1 205.9 213.8
4 Labor productivity, mln rubles/pers.
6.35 7.04 8.5 9.5 10.0
5 Specifi c semi-fi xed costs (in prices of 2013), rubles/MW
1,955 1,670 1,776* 1,760 1,704
6 Specifi c forecast cost of NPP construction, taking into account time limits, rubles/kW
99,758 105,963 104, 187 96, 335 96,639
7 Integral performance on new products, %, including:
109.16 112.6 100 100 100
Revenues from new products sale outside the circuit and inside the circuit on a competitive basis, bln rubles
57.87 56.09 55.2 64.0 70.3
New product orders portfolio of the State Corporation for 10 years, bln rubles
271.6 218.5 Х Х Х
Accompanying revenues, bln rubles
Х Х 2.6 2.7 4.6
8 Reduction of construc-tion in progress / equip-ment to be installed / intangible assets, bln rubles
Х Х –19.5 –18.4 –13.0
* The specifi c semi-fi xed costs planned for 2017 are slightly above the level achieved in 2016 due to the objectives of 2017 related to the repair program and expansion of IT services (corporate IT systems are duplicated in branches, a new system for maintenance and repair is going to be deployed).
39
1,130
SALES MARKET AND PRODUCT CONSUMERS
THE CONCERN’S PRODUCTS (ELECTRICITY AND CAPACITY) ARE SOLD IN THE WHOLESALE ELECTRICITY AND CAPACITY MARKET (WECM), WHICH IS A SPHERE OF CIRCULATION FOR SPECIAL GOODS OF ELECTRICITY AND CAPACITY WITHIN THE UES OF RUSSIA.
ciples of proportionality and fair distribution of contracting agents under the contracts supporting sale of electricity and capacity at regulated prices, the projects pending distri-bution undergo an approval procedure among market participants during preparation for the contracting campaign. During this ap-proval procedure, the projects are optimized taking into account the interests of the market participants. Demand for electricity and power capacity supplied by the Con-cern in the WECM is generally steady with some deviations due to seasonal changes in electricity consumption and water content conditions, with the appropriate change in hydrogeneration in the volume of electricity production on a scale of the Unifi ed Energy System of Russia.
The Concern’s product consumers are all enterprises and companies specifi ed in Sec-tion 2 – Buyers of Power and Capacity of the Wholesale Electricity and Capacity Market Entities Register, and any company or or-ganization, which is connected to the WECM trading system according to the established procedure with a view to make transactions for the purchase of electricity and capacity.
The Concern does not infl uence the compo-sition and number of electricity and capacity buyers. The number, composition and struc-ture of consumers is defi ned by the com-mercial operator of WECM (Trading System Administrator JSC) on an annual basis during the centralized WECM contracting campaign. In order to ensure compliance with the prin-
RUBLES PER MWHIS THE WEIGHTED AVERAGE ANNUAL PRICE OF NPP GENERATED ELECTRICITY SALES IN THE DAYAHEAD MARKET IN
SAFE OPERATIONOF NPPS
2.1. Generating Capacities. Developing Generating Potential __________________41
2.2. Ensuring Safety of Russian NPPs __________________________________________________86
2.3. Radiation Effect on Personnel and Population ________________________________93
2.4. Financial Results _________________________________________________________________________ 100
2.5. Investment Program ____________________________________________________________________ 106
2.6. International Scientifi c and Technical Cooperation ________________________ 109
2.7. International Business and New Products ____________________________________ 112
Central UES 38.9%
South UES 24.2%
Volga UES 31.6%
East UES
Siberia UES
Urals UES 3.3%
Technologically isolated energy systems 0.45%
Northwest UES 35.5%
144.6
92,0
75.0
24.0
72.7
33.6
249.9
8.4
71.7
35.6
119
.6
119
.2
97.
8
99
.3
108
.3
108
.8
103
.5 120
.5
128
.9
134
.9
139
.8
148
.6
143
.0
147.
0
154
.7
158
.3
162
.3
163
.3
170
.1
172
.7
177.
3
172
.2
180
.5 195
.2
196
.4
‘92 ’93 ‘94 ’95 ‘96 ’97 ‘98 ’99 ‘00 ’01 ‘02 ’03 ‘04 ’05 ‘06 ’07 ‘08 ’09 ‘10 ’11 ‘12 ’13 ‘14 ’15 ‘16
2.1. GENERATING CAPACITIES. DEVELOPING GENERATING POTENTIAL196.366
bln kWh—power generation in 2016 0.6 % more versus 2015 (195.21 bln kWh)
195.217bln kWh FAS balance for 2016 (minimum amount of power to be generated by the Concern during the
year). Target fulfi lled by
100.6 %
18 %Is the share of concern's NPPS in total power generated in the Russian Federation
RUSSIAN NUCLEAR POWER PLANTS (BRANCHES OF ROSENERGOATOM CONCERN JSC) PRODUCED MORE POWER IN 2016 THAN IN 2015, THEY INCREASED THE TOTAL OUTPUT BY MORE THAN A BILLIONTO 196.366 BLN KWH VERSUS 195,213 BLN KWH IN THE PREVIOUS YEAR.
41
SHARE OF NPPS IN ELECTRICITY GENERATION BY REGIONS IN 2016, BLN KWH
ELECTRICITY PRODUCTION BY RUSSIAN NPPS, BLN KWH
NPP Miscellaneous
Rosenergoatom / Annual report / 2016 25 years of safe operation
42
1 2 3The strategy of increasing the output of Russian NPPs stipulates that power units capacity, their effi ciency and capacity factors are built up.
83.13 %capacity factor in 2016
85.32 %availability factor in 2016
CAPACITY FACTOR CHANGES, 199220161 bln kWh of additional power was generated by NPPs in 2016 due to optimi-zation of power unit repair times.
FULFILLMENT OF BALANCE TARGET SET FORTH BY FAS AND GENERATION OF POWERBY CONCERN’S NPPS. % AND MLN KWH
Item No.
Power Plant Name Russian FAS Power Generation Target.
Mln KWh
Actual Power Output. Mln KWh
FAS Balance Fulfi llment. %
1 Kalinin NPP 28,200.0 27,154.0 96.3
2 Kursk NPP 25,934.0 27,488.7 106.0
3 Novovoronezh NPP 16,371.0 15,048.1 91.9
Including Novovoronezh NPP-2 power unit No. 1
3,300.0 968.6
4 Smolensk NPP 21,853.0 22,312.9 102.1
5 Kola NPP 10,505.0 9,837.7 93.6
6 Leningrad NPP 27,902.0 28,292.9 101.4
7 Rostov NPP 24,000.0 24,000.7 100.0
8 Balakovo NPP 32,480.0 33,610.8 103.5
9 Beloyarsk NPP 7,770.0 8,399.8 108.1
Including power unit No. 4 3500 3,790.8 108.3
10 Bilibino NPP 202.9 221.0 108.9
Total 195,217.9 196,366.5 100.6
FAS of Russia—199.8 bln kWh
‘87 ’88 ‘89 ’90 ’91 ‘92 ’93 ‘94 ’95 ’96 ‘97 ’98 ‘99 ’00 ‘01 ’02 ‘03 ’04 ‘05 ’06 ‘07 ’08 ‘09 ’10 ‘11 ’12 ‘13 ’14 ‘15 ’16
76,3
76,474
66,1
67,7 67,3
64,9
52,6
53,4
58,3
58,255,6
64,5
69,170,3
71,7
76,3
73,2
73,476
77,7
79,5
80,2
81,3
81,2
80,9
77,9
81,6
85,9
83,1
Target power output for Russian NPPs in 2017
Concern's strategic tar-get—201.1 bln kWh
43
„1 2 3 4 5 6 7 8 9 10
95.7
86.4
52.4
77.3
63.6
78.2
87.6
80.5
91.1
84.7
93.5
86.1
51.3
95.4
61.6
84.8
79.9
78.5
87.7
92
96.2
86.4
81.6
77.7
82.8
79.7
88.5
82.4
91.9
85.1
94.3
86.1
78
96
86 86.1
80.5
82.1
88.1
92.1
CAPACITY FACTORS OF NUCLEAR POWER PLANTS IN 20152016, %
AVAILABILITY FACTORS OF NUCLEAR POWER PLANTS IN 20152016, %
Main factors of output increase in 2015 / 2016:
• decreased aggregate duration of sched-uled repairs at NPP power units (optimized repairs duration—107 days in 2016);
• electricity generation at the Beloyarsk NPP power unit No. 4 (commissioned on Octo-ber 31, 2016).
«Our power plants are drivers in social develop-ment of the regions of their presence, they set high social standards in the territories where they are located, make contribution in the cul-tural and sports life, development and improve-ment of the urban environment. Despite the challenging situation in our country, this work has to be done because our employees, our children and grandchildren live here».
Alexander Vasilyev,Director of Smolensk NPP(from 2015 to 2016)
1 Balakovo NPP
2 Beloyarsk NPP
3 Bilibino NPP
4 Kalinin NPP
5 Kola NPP
6 Kursk NPP
7 Novovoronezh NPP
8 Leningrad NPP
9 Rostov NPP
10 Smolensk NPP
2015 2016
2015 2016
11.6%11.5%
1 Kalinin NPP 2 Kursk NPP
Rosenergoatom / Annual report / 2016 25 years of safe operation
38.9CENTRAL UES
1
CONTRIBUTION OF EACH PLANT INTO THE UES OUTPUT
9.4%6.4%
3 Novovoronezh NPP 4 Smolensk NPP
45
9 %The share of NPPs in the total power out-put of the UES
2
3
4
1 2 3 4
VVER-1000 VVER-1000 VVER-1000 VVER-1000
1986
01
02
03
04
05
06
07
08
09 10 11 12
2015 2016
Rosenergoatom / Annual report / 2016 25 years of safe operation
4.000 MW
According to the results of the annual contest, the plant became Russia’s Best NPP in 2002. In 2012, the Kalinin NPP shared the second place in the contest for the Best Nuclear Power Plants of the Year with the Smolensk NPP.
aggregate installed capaci-ty of reactors in 2016
Operating Performance of Kalinin NPP in 2016
13.8 %
81.2 %
96.3 %
77.28 %
27,154.0mln kWh - power generation in 2016
Reactors commissioned 1984
Generation vs 2015
Russian FAS balance target achievement
Aggregate installed capacity of reac-tors in 2016
Capacity factor
KALININ NPP
5
Udomlya
Tver
Tveroblast
2004
2012
4 km
125 km
47
bln kWh has been generated since the power unit No. 1 start-up date
2017
Charging the core of power unit No. 4,
2011
Rotor assembly, 1984
Main control room
Reactor vessel installation at power
unit No. 1, 1983
36.3
41 2 3
RBMK-1000 RBMK-1000 RBMK-1000 RBMK-1000
19791983 1985
01
02
03
04
05
06
07
08
09 10 11 12
2015 2016
Rosenergoatom / Annual report / 2016 25 years of safe operation
4.000 MW
In 2009, the Kursk NPP was named Russia's Best NPP in Safety Culture. It took the third place in the Best Nuclear Power Plants contest according to the results of 2014.
According to an independent auditor, in 2010 and 2011 the Kursk NPP environmental management system met the requirements of the Russian national standard and the regulatory document on the mandatory certifi cation system for environmental requirements.
aggregate installed capaci-ty of reactors in 2016
Operating Performance of Kursk NPP in 2016
14.0 %
92.5 %
106.0 %
78.24 %
27,488.7mln kWh –power generation
1976
Aggregate installed capacity of reac-tors in 2016
Capacity factor
Reactors commissioned
KURSK NPP
8Generation vs 2015
Russian FAS balance target achievement
KurskKurchatov Kursk
oblast
4 km
40 km
49
bln kWh has been generated since the power unit No. 1 start-up date
2017
Turbine mounting
Reactor assembly, 1976
Transformer assembly
Resolution of the Supreme Soviet
on the Kursk NPP construction, 1966
59.1
1 2 3 4 5 6
01
02
03
04
05
06
07
08
09 10 11 12
2015 2016
VVER-210 VVER-365 VVER-440 VVER-440 VVER-1000 VVER-1200
417 MW
1 000 MW
1195,4 MW
1980
19721971
Rosenergoatom / Annual report / 2016 25 years of safe operation
1,834 MW
Aggregate installed capacity of reac-tors in 2016**
The Novovoronezh NPP is one of the oldest enterprises in the Russian Federation nuclear power industry.
With the start-up of the No-vovoronezh NPP power unit No. 1, a history of the nuclear power industry development began not only for Russia, but also for several coun-tries of Eastern and Central Europe.
The Novovoronezh power plant is the fi rst Russian NPP with water-water energy reactors (VVER). During more than 40 years of its history, fi ve power units with VVER-type reactors were built and commissioned.
aggregate installed capac-ity of reactors in 2016
Operating Performance of Novovoronezh NPP in 2016
7.7 %
+17.2 %
91.9 %
87.56 %
15,048.1* Without the power unit during pilot operation.
** Without Novovoronezh NPP-2 power unit No. 1 commissioned in 2017.
mln kWh – power genera-tion, including Novovoronezh NPP-2 power unit No. 1 - 968.6 mln kWh
1964
Capacity factor*
Reactors commissioned
NOVOVORONEZH NPP
5Generation vs 2015
Russian FAS balance target achievement
Voronezh
Novovoronezh
Voronezhoblast
2016
0
1990
1984
3.5 km
45 km 51
bln kWh has been generated since the power unit No. 1 start-up date
The brand-new power unit No. 1 of the Novovoronezh NPP-2 based on NPP-2006 series VVER-1200 reactor with the installed capacity of 1,195.4 MW (Generation 3+ innovative power unit) was constructed and put in pilot operation at the stage of bringing the output to 100 %, as of the end of 2016.
2017
In 2013, the Novovoronezh and Leningrad NPPs took the third place in the annual contest for the Best Nuclear Power Plants of the Year.
Main control room
Main control room of power
unit No. 1, 1965
Novovoronezh NPP power unit No. 1 (unit No. 6) con-
struction site
Reactor of power unit No. 1, 1967
Final shut-down of power unit No. 3 for preparation for decommissioning27.6
1 2 3
RBMK-1000 RBMK-1000 RBMK-1000
1985
1990
2015 2016
01
02
03
04
05
06
07
08
09 10 11 12
Rosenergoatom / Annual report / 2016 25 years of safe operation
3,000 MW
The Smolensk NPP became a multiple time winner of the industry-level contest for the Best Nuclear Power Plants in 1992, 1993, 2010, 2011 and 2015, and the runner-up in 2012 and 2014.
aggregate installed capaci-ty of reactors in 2016
Operating Performance of Smolensk NPP in 2016
11.4 %
92.3 %
102.1 %
84.67 %
22,312.9mln kWh – power generation in 2016
1982
Aggregate installed capacity of reac-tors in 2016
Capacity factor
Reactors commissioned
SMOLENSK NPP
6Generation vs 2015
Russian FAS balance target achievement
Smolensk
Desnogorsk
Smolenskoblast
4.5 km
105 km
53
bln kWh has been generated since the power unit No. 1 start-up date
2017
Turbine generator
V.I. Dolgikh, Secretary of the Central Commit-
tee before power unit No. 1 start-
up, 1982
Main control room
Turbine equip-ment assembly,
1981
16.7
Rosenergoatom / Annual report / 2016 25 years of safe operation
35,6NORTHWEST UES
26.4%
1 Kola NPP 2 Leningrad NPP
9.2%
55
6 %The share of NPPs in the total power out-put of the UES
CONTRIBUTION OF EACH PLANT TO THE UES OUTPUT
1
2
1 2 3 4
VVER-440 VVER-440 VVER-440 VVER-440
1974 19811984
01
02
03
04
05
06
07
08
09 10 11 12
2015 2016
Rosenergoatom / Annual report / 2016 25 years of safe operation
The Kola NPP is the fi rst nuclear power plant of Russia built beyond the Arctic circle.
Power units of the Kola NPP are currently operated in a limited dispatching mode due to consumption decrease and power transit restric-tions.
aggregate installed capac-ity of reactors in 2016
5.0 %
+3.5 %
1,760 MW
93.6 %
63.63 %
9,837.7
1973
mln kWh –power generation in 2016
Operating Performance of Kola NPP in 2016
Aggregate installed capacity of reac-tors in 2016
Capacity factor
Reactors commissioned
KOLA NPP
39Generation vs 2015
Russian FAS balance target achievement
Kolapeninsula
11 km
170 kmMurmansk
Polyarnye Zori
57
bln kWh has been generated since the power unit No. 1 start-up date
2017
Turbine room of the Kola NPP
Big control panel of power unit No.
1, 1973
Kola NPP con-struction, 1973
The operation period of the Kola NPP power unit No. 1 (start-up year—1973) will be extended for another 15 years after 2018 and will total 60 years.
99.1At main
control room
41 2 3
2015 2016
01
02
03
04
05
06
07
08
09 10 11 12
RBMK-1000 RBMK-1000 RBMK-1000 RBMK-1000
19751979
1981
Rosenergoatom / Annual report / 2016 25 years of safe operation
The Leningrad NPP is the fi rst plant in Russia with re-actors of RBMK-1000 type.
In 2012 and 2013 the Len-ingrad NPP took the third place in the annual contest for the Best Nuclear Power Plants of the Year.
aggregate installed capacity of reactors in 2016
14.4 %
80.52 %
28,292.9
+2.9 %
4,000 MW
+101.4 %
1973
mln kWh –power generation in 2016
Aggregate installed capacity of reac-tors in 2016
Capacity factor
Reactors commissioned
LENINGRAD NPP
Operating Performance of Leningrad NPP in 2016
9Generation vs 2015
Russian FAS balance target achievement
5 km
70 km
Leningrad oblast
SosnovyBor Saint Petersburg
59
71.6bln kWh has been generated since the power unit No. 1 start-up date
2017
Main control room
In the Leningrad NPP reactor room, 1973
Physical start-up of the Leningrad NPP
power unit No. 1, 1973
Leningrad NPP-2 construction
In 2016, the Leningrad NPP became Russian Organization of High Social Effi ciency as the winner of the nation-wide contest in the nominations for Human Resource Devel-opment in Production Indus-try Organizations, and for Participation in Solving Social Issues of Territories and Cor-porate Charity Development.
The Leningrad NPP won the System Operator’s award for Considerable Contribution in Ensuring Safety of Russian UES Modes according to the results of 2016.
1 Balakovo NPP
75%
Rosenergoatom / Annual report / 2016 25 years of safe operation
31.6 %VOLGA UES
The share of NPPs in the total power output of the UES
STATIONS CONTRIBUTION TO REGIONAL OUTPUT
1
50%
2 Rostov NPP
61
%24.2 %SOUTH UES
The share of NPPs in the total power out-put of the UES
2
1 2 3 4
VVER-1000 VVER-1000 VVER-1000 VVER-1000
19871988
1993
01
02
03
04
05
06
07
08
09 10 11 12
2015 2016
Rosenergoatom / Annual report / 2016 25 years of safe operation
4,000 MW
The Balakovo NPP is an acknowledged leader of the Russian nuclear industry. It was awarded the title of Russia’s Best NPP several times (according to oper-ating results of 1995, 1999, 2000, 2003, 2005-2009, 2011-2014, and 2015).
The Balakovo NPP became the winner of the 14th In-ternational Contest for the European Quality Gold Medal.
aggregate installed capaci-ty of reactors in 2016
17.1 %
+2.6 %
103.5 %
95.66 %
33,610.8
1985
mln kWh –power generation in 2016
Operating Performance of Balakovo NPP in 2016
Aggregate installed capacity of reac-tors in 2016
Capacity factor
Reactors commissioned
7
BALAKOVO NPP
Generation vs 2015
Russian FAS balance target achievement
Saratov
Balakovo
Saratovoblast
12.5 km
145 km
2016
63
bln kWh has been generated since the power unit No. 1 start-up date
2017
Power unit repair operations
Main control room
Balakovo NPP construction,
1985
Balakovo NPP construction,
1985Due to the application of RPS tools in 2016, the Balak-ovo NPP cut the repair time of the power units No. 3 and No. 4 by 25.6 days in total, thus ensuring additional power output of more than 450 mln kWh, which is equal to 474 mln rubles in money terms.
26.8
1 2 3
VVER-1000 VVER-1000 VVER-1000
2015 2016
01
02
03
04
05
06
07
08
09 10 11 12
Rosenergoatom / Annual report / 2016 25 years of safe operation
The Rostov NPP is one of a se-ries of unifi ed NPP projects with VVER-1000 reactors meeting the requirements for fl ow-line construction.
The power unit No. 4 is cur-rently under construction.
According to the annual contest results, the Rostov NPP was named Russia’s Best NPP in 2004, 2011 and 2013, it took the second place in 2012 and 2014, and the third place in 2015. It has become the winner of the industry-level contest in safety culture three times since 2001.
aggregate installed capac-ity of reactors in 2016
mln kWh –power generation in 2016
12.2 %
91.08 %
24,000.7
2001
100 %
3,000 MW
+17.0 %
Operating Performance of Rostov NPP in 2016
Aggregate installed capacity of reac-tors in 2016
Capacity factor
Reactors commissioned
ROSTOV NPP
18Generation vs 2015
Russian FAS balance target achievement
Rostov-On-Don
Volgodonsk
Rostovoblast
250 km
2010
2014
2015
16 km
65
bln kWh has been generated since the power unit No. 1 start-up date
On March 30, 2001, a turbine generator of the power unit No. 1 was connected to Rus-sia's Unifi ed Energy System.
On September 16, 2015, the power unit No. № 3 was put into operation.
2017
Main control room
New units con-struction at the
Rostov NPP
Power unit No. 2 power start-up,
2010
Reactor vessel delivery
87.4
1 Beloyarsk NPP
8%
Rosenergoatom / Annual report / 2016 25 years of safe operation
3.3 %URALS UES
The share of NPPs in the total power out-put of the UES
STATIONS CONTRIBUTION TO REGIONAL OUTPUT
1
80%**
2 Bilibino NPP
67
%
2
** The share of electricity generated in the isolated Chaun-Bilibino energy system.
0.5 %EASTUES*
* With isolated systems.
1 2 3 4
POWER AWARDS2016
AMB-100 AMB-100 BN-600 BN-800
1980
1967
1981
01
02
03
04
05
06
07
08
09 10 11 12
2015 2016
Rosenergoatom / Annual report / 2016 25 years of safe operation
1,485 MW
86.37 %
The Beloyarsk NPP named after I. V. Kurchatov is the old-est nuclear plant in the USSR. The Beloyarsk NPP is Russia’s only power plant with power units of various types.
The Beloyarsk NPP runs two power units with BN reactors.
The Beloyarsk NPP hosted one of the key events of the year in the national nuclear power industry—the brand-new power unit No. 4 with BN-800 fast breeder reactor (885 MW installed capacity) was put into commercial op-eration on October 31, 2016.
aggregate installed capacity of reactors in 2016
4.3 %
+83.5 %
108.1 %
8,399.8* Without power unit No. 4
during pilot operation.
mln kWh is the electricity out-put in 2016, including power unit No. 4 – 3,790.8 mln kWh
1964
Operating Performance of Beloyarsk NPP in 2016
Aggregate installed capacity of reac-tors in 2016
Capacity factor*
Reactors commissioned
BELOYARSK NPP
17Generation vs 2015
Russian FAS balance target achievement
ZarechnyEkaterinburg
Sverdlovskoblast
1989
2015
2001
1997
1995
1994
45 km
3.5 km
69
bln kWh has been generat-ed since the power unit No. 1 start-up date
Units No. 1 and No. 2 now in a long-term conservation mode with the fuel unloaded from the reactor. In terms of inter-national standards, they are at the fi rst stage of NPP decom-missioning.
2017
Power unit No. 4 power
start-up, 2015
Stage 1 model of the Bilibino NPP,
1964
Central hall of the BN-800 reactor
room
Hook-up of power unit No. 3, 1980
The Beloyarsk NPP was awarded the title of Russia’s Best NPP in 1994, 1995, 1997 and 2001 according to the annual contest results.
77.5
1 2 3 4
EGP-6 EGP-6 EGP-6 EGP-6
19751976
01
02
03
04
05
06
07
08
09 10 11 12
2015 2016
Rosenergoatom / Annual report / 2016 25 years of safe operation
48 MW
The Bilibino NPP design enables 48 MW power generation by 4 power units (4x12 MW) with the total heat output of 66 Gcal / h (4x16.5 Gcal / h). Meanwhile, the max-imum heat output in winter months may reach 100 Gcal / h with power output limitation.
Specifi c features of the Bilibi-no NPP operation: it works in the isolated energy system, the share of power output in the regional energy con-sumption averages 75-94%, power units are operated in the regulated load mode, the plant underpins the only source of water supply to the town of Bilibino.
aggregate installed capac-ity of reactors in 2016
0.11 %
+2.4 %
108.9 %
52.42 %
221.0mln kWh –power generation in 2016
1974
Operating Performance of Bilibino NPP in 2016
Aggregate installed capacity of reac-tors in 2016
Capacity factor
Reactors commissioned
BILIBINO NPP
9.Generation vs 2015
Russian FAS balance target achievement
Bilibino
Chukotkaautonomousokrug
Anadyr
2009
4.5 km
610 km
71
bln kWh has been generated since the power unit No. 1 start-up date
In 2009, the Bilibino NPP shared the fi rst place in the Best NPP in Safety Culture contest with the Balakovo NPP.
2017
Central control panel
Central hall
Main control room, 1974
Reactor room of the NPP under
construction
.87
Rosenergoatom / Annual report / 2016 25 years of safe operation
72
1
2
3
POTENTIAL FOR INCREASING POWER GENERATION AT CONCERN’S NPPS
NEW UNITS COMMISSIONING
EXPANSION OF POWER PRODUCTION CAPABILITIES AT OPERATING NPPS
Modernization and service life extension of power units 699.7 bln kWh
3.14 bln kWh
1.03 bln kWh
0.97 bln kWh
VVER power units capacity increase
Maintenance campaigns optimization
Power unit No. 1 of the Novovoronezh NPP-2
Powered up on August 5, 2016
25 power units of Russian NPPs are operating with extended service life
13 VVER-1000 power units are operating with Nheat = 104 %
Additional power output owing to repair work optimi-zation
73
CASE STUDY
One of the key events in the domestic and global nuclear power industry took place in 2016 at the Novovoronezh NPP—a state-of-the-art power unit No. 1 of generation 3+ was hooked up at the Novovoronezh NPP-2 (put into commercial operation in February 2017). If compared to conventional power units with VVER-1000 reactor, the NPP-2006 project laying the basis for construction of the fi rst power unit of the Novovoronezh NPP-2 has several advantages that considerably improve its economics and safety:
• Electrical output of the reactor unit increased by 20 %—from 1,000 to 1,200 MW;
• Main equipment service life (reactor vessel and steam generator) increased twice—from 30 to 60 years;
• Due to high automation and introduction of new process design solutions, the headcount decreased by 25-30 %;
• The power unit meets all ‘post-Fukushima’ requirements for safety. Several novel and unparalleled safety systems, such as a molten core catcher or a passive heat removal system allowing to cool down the reactor core through natural air circulation without power supply and human input.
For information related to the quality of equipment supplied to the Concern’s NPPs see Section 4.5-Quality Assurance.
Key Indicators of NPP Power Units under Construction in 2016
In 2016, 8 NPP power units were under construction according to general con-tractor agreements with ASE JSC, Atome-nergoproekt JSC, CONCERN TITAN-2 JSC (engineering arrangement), Uralenergos-troy Management Company LLC (classical general contractor arrangement).1 General contractors and contractors were selected according to the requirements of the Uni-fi ed Industry Standard for Procurement of Rosatom State Corporation (for additional information refer to Section 4.4).
1. Without the Leningrad NPP-2 power units No. 3 and No. 4 that do not have construction permits.
NUMBER OF ORGANIZATIONS AND EMPLOYEES INVOLVED IN CONSTRUCTION OF NPPS IN 2016, AND PLANNED INVOLVEMENT IN 2017
2016 Planned involvementin 2017
Number of Main Organizations Involved 197 149
Total Employees Involved 13, 843 14,029
Including:
Engineers and Technical Employees 2, 118 2,090
Blue Collar Workers 11,375 11,939
NEW POWER UNITS CONSTRUCTION
The Concern became a global leader in nuclear energy technologies, having launched the world’s fi rst light-water reactor of generation 3+ at the Novovoronezh NPP.
Boosting the share of nuclear power in the national energy balance while maintaining the required safety level, which includes the con-struction of new nuclear power plant units, is the Concern’s strategic goal that is fully compatible with the Russian Energy Strategy until 2030, and the General Allocation Pat-tern for Energy Facilities of Russia until 2020, taking into account long-term development until 2030.
Rosenergoatom / Annual report / 2016 25 years of safe operation
74
8
1,199
Turbine generator shafting alignment completed.
1,070
ROSTOV NPP
MW
4
VVER-1000
1,199 MW
VVER-1200
LENINGRAD NPP2 LENINGRAD NPP21 2
VVER-1200
Start-up and commissioning operations started (Stage A-1 –Individual Equipment Testing).
MW
Installation of main transformers in proper locations completed.
MW1,195VVER-1200
NOVOVORONEZH NPP2 2
Welding of the main circulation pipeline in the reactor building of the power unit No. 2 completed.
NPP2006 PROJECT
POWER UNITS WERE UNDER CONSTRUCTION IN 2016
LEGEND
Power Unit No.1
KEY INDICATORS OF NPP POWER UNITS UNDER CONSTRUCTION IN 2016
75
11,641
1,2551,255VVER-TOI VVER-TOI
KURSK NPP2 KURSK NPP2
MW MW
1 2BALTIC NPP 1
1,194 MW
VVER-1200
BALTIC NPP 2
1,194 MW
VVER-1200
Building of the construction base storage facilities completed.
Preparatory operations underway.
VVERTOI PROJECT
MW IS THE TOTAL CAPACITY OF ALL POWER UNITS UNDER CONSTRUCTION
Rosenergoatom / Annual report / 2016 25 years of safe operation
76
„CASE STUDY
In 2016, Rosprirodnadzor approved the international public environmental expert statement on the safety of the Leningrad NPP-2 power units No. 1 and No. 2 under construction.
Issues of NPPs Construction and Approaches to Their Solution
In 2015-2016, more than 15 federal rules and regulations were enacted in the sphere of nu-clear power (hereinafter—FRR), which required a series of consecutive steps according to RB-028-04:
• Identifying non-compliance of NPP units under construction with the requirements of applicable regulatory documents (RD);
• Determining the impact of identifi ed non-compliance of NPP units with safe-ty-related RD; Grouping the non-compli-ance cases and defi ning the safety issues;
CASE STUDY
The conclusion of the public environmental expert review becomes valid upon approval by a federal executive authority in charge of environmental expert review (Rostekhnadzor).
«The results of the expert review we have held show: the Leningrad NPP power units No. 1 and No. 2 under construction are environmen-tally safe, their operation will have a minimum impact on the environment».
Sergey Baranovsky, Chairman of the Expert Commission for Public Environmental Expert Review, President of the Russian Green Cross
MODERNIZATION AND SERVICE LIFE EXTENSION OF POWER UNITS
1. Diagram of operating NPP power units upgrade management may be found in the Concern’s 2015 Annual Report (page 75).
• Evaluating the impact of each safety issue on the NPP unit;
• Assessing the relevance of safety measures.
Safety reports will be updated on the basis of the analysis carried out. Considerable labor resources of the Concern (NPPs, HQ structural units, Concern’s Capital Projects Implementation Branch Offi ces) and design institutes were involved.
Documentation for the Novovoronezh NPP-2, Leningrad NPP-2 and Kursk NPP-2 projects will be updated in 2017 with due considera-tion of the requirements of new federal rules and regulations.
The Concern’s NPPs upgrade management1 is based on the industry-level regulatory docu-ments, and implementation of long-term, me-dium-term, and annual (current) operations planning procedures.
Modernization Results of 2016
Among the major trends of NPPs modern-ization in 2016, according to the Program
for Ensuring Safe and Reliable Operation of Existing Power Units, are:
• Support of NPP power unit safety in accordance with the requirements of standards and rules in the area of nuclear power use;
• Compliance with the terms and conditions of licenses for power unit operation;
In 2016, Rosprirodnadzor approved the international public environmental expert statement on the safety of the Leningrad NPP-2 power units No. 1 and No. 2 under construction.
According to Article 20 of the Law on Environmental Expert Review, the public environmental expert review is organized and held at the initiative of citizens and non-government organizations (associations), and at the intiative of local managing bodies of non-government organizations (associations) that have environmental protection among their core business activities, according to their articles of association, including organization and performance of environmental expert reviews, and are registered according to the procedure stipulated by the Russian Federation laws.
77
417834
2,274
2,738 3,780
4,762
6,272
8,362
9,802 10,802
11,802
13,242
16,242
17,24218,242
19,24220,242
21,242
‘01 ‘02 ‘03 ‘04 ‘05 ‘06‘08 ‘10‘09 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘23
3
3
3
3
3
3
3
3
4
4
4
4
4
4
5
2 2
2
2 2
2
21 1
1
1
1
1
1
3
3
4
17,242• Implementation of post-Fukushima actions
for mitigation of beyond design basis acci-dents at NPPs;
• Execution of industry-level programs for enhancing NPP safety by means of upgrade of main reactor turbine, electrical, meas-urement and control equipment, process systems, control and protection systems, air conditioning and ventilation systems, among other things;
• Recovery of resource characteristics of the graphite stack of RBMK-type NPP power units;
• Replacement of NPP equipment that reached the end of its service life with a view to increase reliability and extend mean time between repairs of the power units;
• Improving safety and reliability of opera-tion of systems and equipment involved in handling spent nuclear fuel and radioactive waste at existing NPPs;
• Implementation of systems for diagnostics and monitoring of operating condition of
heating, mechanical and electrical equip-ment of NPPs;
• Modernization aimed at increasing installed capacity and power generation at the ex-isting NPP power units;
• Implementation of modern energy effi cient processes and equipment;
• Optimization of processes in order to im-prove energy effi ciency of NPP power units operation;
• Implementation of NPP energy effi ciency automated management systems;
• Renovation and modernization of worn out and obsolete equipment of auxiliary indus-trial facilities that ensure proper operation of NPPs.
The target-oriented work planned for 2016 was fully completed and made a considerable contribution to improving safety, reliability and cost-effectiveness of further operation of upgraded NPP power units.
NPP GENERATING CAPACITIES PRESERVATION DUE TO SERVICE LIFE EXTENSION1, CAPACITY, MW
1. Without repeated service life extension for the Novo-voronezh NPP power unit No. 4 and the Kola NPP power unit No. 1 in 2018, and the Kola NPP power unit No. 2 in 2019.
In 2016, a series of operations aimed at extending the service life of the Kalinin NPP power unit No. 2 was accomplished, and a license for the additional operation period was received for the power unit.
MWIS THE AGGREGATE INSTALLED CAPACITY OF 25 POWER UNITS OF RUSSIAN NPPS WITH EXTENDED SERVICE LIFE AS OF DECEMBER 2016
699.7bln kWh of electricity were produced by power units with the extended service life as of January 1, 2017
Novovoronezh NPP
Leningrad NPP
Kola NPP
Bilibino NPP
Kursk NPP
Beloyarsk NPP
Smolensk NPP
Kalinin NPP
Balakovo NPP
power unit No.
Rosenergoatom / Annual report / 2016 25 years of safe operation
78
PLANS FOR SERVICE LIFE EXTENSION AT POWER UNITS EXPIRING BETWEEN 2016 AND 2023
NPP Unit Reactor Type Commissioning Year Expiry Year Planned Year of Extended Service Life Expiry
Balakovo
2 VVER-1000 1987 2017 2047
3 VVER-1000 1988 2018 2048
4 VVER-1000 1993 2023 2053
Smolensk 3 RBMK-1000 1990 2020 2035
SERVICE LIFE EXTENSION FOR EXISTING NPP POWER UNITS
NPP POWER UNITS DECOMMISSIONING
The Concern is decommissioning the Novo-voronezh NPP power units No. 1 and No. 2. Decommissioning operations are carried out by the Concern’s branch—Pilot and Demon-stration Engineering Center for Decommis-sioning.
Pursuant to the existing Rostekhnadzor license applicability conditions and according to the project for decommissioning in 2016, the following operations were performed to prepare the infrastructure for decommission-ing of the Novovoronezh NPP power units No. 1 and No. 2:
• A high-performance complex for plasma treatment of RAW was put into pilot oper-ation;
• Ultrasonic deactivation and plasticized substances deactivation units were com-missioned to deactivate materials until they are suitable for unrestricted use;
• A fi nal radiation control room was created for production of data sheets for “clean” metal scrap.
According to the established industrial pro-gram, in 2016, the branch accomplished the following work:
• Liquid radioactive waste collected during NPP power units operation at the liquid RAW storage facility No. 3 was repro-cessed;
Service life extension for existing NPP power units once they exhaust the determined service life is one of the priorities aimed to maintain generating capacities and increase NPP safety.
By December 2016, the operations on ex-tending service life of 25 NPP power units with the aggregate installed capacity of 17.242 MW were completed.
Plans for 2017
Implementation of the programs for prepara-tion of the Balakovo NPP power units No. 2, 3, 4 and the Smolensk NPP power unit No. 3 for extended service life (see table) between 2017 and 2023 is being completed.
1. According to the Resolution of Rosatom State Corporation No. NVOAES3R-755R (3,9)–2015 dated November 19, 2015, and the Concern’s Order No. 9 / 1397-P dated December 11, 2015.
• Raw water system equipment and reactor equipment repair machines were disman-tled; equipment was removed from the central hall of power unit No. 2 in order to place a solid RAW separation assembly and create a fi xed station for dismantled equip-ment fragmentation.
Final Shut-Down of Power Units for Decommissioning
On December 29, 2016, the Novovoronezh NPP power unit No. 3 with the installed capacity of 417 MW was fi nally shut down for decommissioning preparations1. A license was obtained for operation of the power unit shut down for decommissioning. Preparations for decommissioning of NPP power units in 2016 were carried out in compliance with the Programs of Measures for Ensuring NPPs De-commissioning approved by Rosatom State Corporation, and the Federal Target Program for Ensuring Nuclear and Radiation Safety in 2016-2020 and until 2030 stipulating that the Beloyarsk NPP power units No. 1 and No. 2, Bilibino NPP power units No. 1-4 and fi rst-generation NPP power units with VVER-440 and RBMK-1000 reactors were prepared for decommissioning.
Operations of 2016 include:
• The Novovoronezh NPP power unit No. 3 was fi nally shut down for decommissioning,
a license was obtained for the shut-down power unit operation with no power gen-eration;
• Comprehensive examination of the Len-ingrad NPP was performed, an action plan was developed to prepare it for fi nal shut-down;
• The Program for Decommissioning of Belo-yarsk NPP Power Units No. 1 and No. 2 was updated, a set of documents was sent to Rostekhnadzor to obtain the operation li-cense due to expiry of the existing licenses in 2017;
• Routine operations intended to ensure safe condition of the Beloyarsk NPP power units No. 1 and No. 2 were performed;
• Utility systems of the Beloyarsk NPP power units No. 1 and No. 2 passed a series of preparations for removal of SNF stored in storage pools, trial removal of SNF removal from the said power units was carried out;
• Construction of the diesel fuel supply depot was completed, upgrade of the modular boiler house, construction of the diesel generator plant continued in order to get ready for fi nal decommissioning of the Bilibino NPP power units, power units confi guration after fi nal shut-down was defi ned.
Leningrad NPP
Rosenergoatom / Annual report / 2016 25 years of safe operation
80
„107
The goal of the maintenance operations strategy adopted by the Concern is to sup-port the working capacity of NPP systems and equipment in order to ensure safe, reli-able and cost-effective operation of nuclear power plants according to the standards and rules applicable to the nuclear power industry.
Pursuant to the concept endorsed by the Concern and the IAEA technical documents, NPP equipment maintenance is based on scheduled (preventive) maintenance and on-condition maintenance.
The Annual Maintenance Schedule of Russian NPPs for 2017 was developed by the Concern and approved by its CEO in 2016. With a view to enhance the quality of long-term planning of NPP maintenance and repair, the Concern developed a long-term schedule of power units maintenance in 2018-2027.
In terms of power generation and mainte-nance costs reduction, the maintenance cam-paign of 2016 was fully completed at a desired quality level. 32 NPP power units passed 33 repairs with the actual duration totaling 1,873 days (planned duration—1,980 days according to the approved annual schedule of Russian NPP power units maintenance in 2016).
Optimization of maintenance duration by 107 days in total became possible due to the following: targeted search for and elimination of downtime during scheduled maintenance periods as part of the RPS development; conservative approach to compilation of power units maintenance schedules providing for slack time to eliminate potential defects; absence of the defects infl uencing the dura-tion of the critical maintenance path.
Additional power output due to NPP equip-ment maintenance duration optimization in 2016 totaled 1,030 mln kWh.
CASE STUDY
MAINTENANCE CAMPAIGN RESULTS
The Leningrad NPP accomplished the repair campaign of 2016 ahead of schedule and spent 254.15 days for it. The Russian Federal Antimonopoly Service (FAS) target for repair of four operating power units at the Leningrad NPP was 277 days.
Rosenergoatom Concern JSC set its own targets: bottom level—272 days and top level—259 days.
«With the reduction of repair work duration by 22.85 days versus the FAS target, we additionally produced 750 mln kWh for the region».
Pavel Lavrentyev, Deputy Chief Engineer for Repair, Leningrad NPP
254.15spent on the Leningrad NPP's repair campaign
750mln kWh were additionally produced for the region owing to repair times cutdown
DAYSWAS THE TOTAL OPTIMIZATION OF REPAIR TIMES
81 ROSATOM PRODUCTION SYSTEM (RPS) IMPLEMENTATION
Positive attitude to RPS grew by 18 % on average; improvement suggestions—by 23 %. Knowledge on employee motivation increased by 17 %. RPS tools utilization rate growth averaged 25 %. Maximum growth rate—at the Leningrad, Kalining and Kola NPPs.
For the purpose of system-wide deployment of the Rosatom Production System (hereinaf-ter—RPS) in the division, the Concern’s CEO is implementing a personal RPS project—Power Engineering Division Conversion into RPS Division. The project is aimed at boost-ing operational excellence with RPS tools, and hitting strategic targets of the Power Engineering Division in 2016-2018.
The division conversion program is run through:
• Goals decomposition;
• Management system visualization;
• Large-scale involvement of employees into RPS projects implementation.
Results of 2016
In 2016, 8 nuclear power plants and the Concern’s Headquarters (hereinafter—HQ) adopted the practices of the Smolensk and Balakovo NPPs according to the Leaders Teach Leaders principle. The Balakovo, Len-ingrad and Smolensk NPPs took part in the industry-level program (monitoring of the RPS deployment and indicators achievement is carried out by RPS software of Rosatom State Corporation), and the HQ and remaining 7 stations—division-level program (monitoring of the RPS deployment and indicators achieve-ment is carried out by the RPS Development and Operational Effi ciency Department).
The Rosatom State Corporation Management Board resolved to name the Leningrad NPP as the RPS Leader for the fi rst time ever accord-ing to the results of 2016.
4.32of 5 is the average rate across the Headquarters
100 %of the personnel workplaces covers the 5S System
ROSATOM STATE CORPORATION GUIDANCE MATERIALS ARE ADOPTED FOR ALL AREAS OF THE RPS DEPLOYMENT
MANAGEMENT PROCEDURE FOR THE GOAL TREE AND XMATRICES
5S
• Set in order• Shine• Standardize• Sustain• Sort
5S CHECKUP PROCEDURE
INFORMATION CENTER OPERATION PROCEDURE
IMPROVEMENT SUGGESTIONS FILING ALGORITHM
RPS PROJECTS MANAGEMENT PROCEDURE (RPS PROJECT IMPLEMENTATION GUIDELINES)
PROVISION ON EMPLOYEE MOTIVATION SYSTEM AND TOOLS
Rosenergoatom / Annual report / 2016 25 years of safe operation
Think Tank
As part of implementing the program for con-version of the power engineering division into the RPS division, the Concern’s Headquar-ters and branches (Balakovo, Leningrad and Smolensk NPPs) put the Think Tank informa-tion system into pilot operation in June 2016. The system allows the employees to fi le their improvement proposals from workplace com-puters without any paperwork and on the job.
Industry-Level Contest of Improvement Proposals and RPS Projects
In 2016, the division took part in the three-stage annual contest of improvement proposals and RPS projects among the employees of Rosatom State Corporation. At the fi rst stage, the Concern’s NPPs and subsidiary companies selected the best improvement proposals and RPS projects implemented in 2016 within structural units. The selected winners were subject to partic-ipation in the second stage on the division level. At the second stage, the division’s screening board considered over 80 works submitted by NPPs, Atomenergoremont JSC,
According to the results of the industry-level RPS Leaders contest, Denis Vikhastiy, Repair Engineer of the Kursk NPP, Branch of Rosenergoatom Concern JSC, became the winner in the nomination for Effi cient Use of Resources (Costs, Materials).
Atomtekhenergo JSC and other organiza-tions of the division, and selected the most effi cient ones. Thus, the division approached the industry-level contest with 12 improve-ment proposals and 12 RPS projects.
The third stage of the contest was held as part of the annual RPS Leaders forum that hosted the representatives from various enterprises within Rosatom State Corpora-tion management circuit who showed their achievements to the contest committee.
Industry-Level Recognition Program—Rosatom Man of the Year 2016
According to the results of the industry-lev-el Rosatom Man of the Year 2016 contest, an inter-disciplinary RPS project (Feasibility Study for VVER-1000 SNF Involvement in Reprocessing at RT-1 Plant) team made up of the representatives of Rosenergoatom Concern JSC, PO Mayak FSUE and Rosatom State Corporation, was one the three winners in the Team of the Year nomination for their practical demonstration of solutions for SNF reprocessing and the nuclear fuel cycle clo-sure in the two-component NPP system with VVER and fast breeder reactors.
83
2013 2014 2015 2016
25 48
300
1,057
2013 2014 2015 2016
101 5541,000
7,734
2013 2014 2015 2016
550
2,050
2,808
4,170
POWER ENGINEERING DIVISION’S BEST RPS PROJECTS AND IMPROVEMENT PROPOSALS OF 2016 (WITH ESTIMATED COST IMPACT)
№ NPP RPS Project Name / Improvement Suggestion Savings, mln rubles
1. Balakovo NPP RPS Project: Increasing Output through Reduction of Average Repair Time of Power Unit No. 3
455.9
2. Kalinin NPP Improvement Suggestion: Application of Ejector Pump (Air Lift) for Slot Assemblies and Intake Chambers Cleaning
1.4
3. Kursk NPP RPS Project: Reduction of SARZ TG-7, 8 Upgrade and Repair Times during Current Repair of Power Unit No. 4 in 2016
144.0
4. Kursk NPP Improvement Suggestion: Development of Plug for Repair of Lower Channel of Assembly 26 Process Tube Allowing to Cut off Process Tube from Steam-Water Communication Lines without Dismantling of Carriers of Assemblies 25-33r.
4.6
5. Smolensk NPP RPS Project: Optimization of Industrial Chemical Analysis Control Process for Waste and Natural Waters
1.15
6. Smolensk NPP RPS Project: Optimizing Work for Repeated Forced Circulation Circuit and Du800 Fittings Replacement during Repair of Smolensk NPP Power Unit No. 1 in 2016
38.9
7. Smolensk NPP Improvement Suggestion: Ensuring Compatibility of Electronic Do-simeters DMC 3000 and Automatic Reader ADR-101
29.3
8. Capital Projects Im-plementation Branch Offi ce
Optimization of Construction and Commissioning Times of Fuel Packaging Container Receiving and Sending Unit of Leningrad NPP
426.0
NUMBER OF RPS PROJECTS (A YEAR)
NUMBER OF IMPROVEMENT PROPOSALS
SAVINGS (MLN RUBLES A YEAR)
Rosenergoatom / Annual report / 2016 25 years of safe operation
84
Confi rmation of RPS Enterprise and RPS Leader statuses
The Program for Power Engineering Division Conversion to RPS Division in 2017 stipulates consistent deployment of the RPS not only at NPPs, but also at all other branches and subsidiary companies of the Concern, that will study the relevant principles and tools.
NPP employees who passed certifi cation at Rosatom Corporate Academy as RPS coach-es will extend a helping hand in this process. Branches and subsidiary companies will join the process and fi nish the RPS deployment by the end of 2017.
ENTERPRISES INVOLVED IN 2ND STAGE OF TRANSFORMATION INTO RPS DIVISION IN 2017
RPS TRAINING DEMAND AND SUPPLY
Bal NPP
Bel NPP
Bil NPP
Kln NPP
Kol NPP
Kur NPP
Nvo NPP
Len NPP
Rst NPP
Smo NPP
Head Offi ce
Declared demand, pers.-course
410 883 234 686 1,403 1,442 490 637 2,870 1, 666 478
Actually trained, pers.-course
459 883 234 739 1,487 1, 442 490 652 2,870 1, 832 762
Total 112 % 100 % 100 % 108 % 106 % 100 % 100 % 102 % 100 % 110 % 159 %
TRAINING TOOLS LOCAL RPS TRAINERS
5,286Full-time (local trainers of NPPs and HQ)
47NPP candidates
5,090Distant
20Qualifi ed by the Corporate Academy
222Full-time (Rosatom Corporate Academy)
10Operating NPPs
10
4
18Obtained certifi cates
Branches
3
Subsidiaries Branches of subsidiary and affi liated companies
Capital Projects Implementation Branch Offi ce, Pilot and Demonstration Engineering Center, Floating Nuclear Power Plant, Technology Branch Offi ce
Each plant has to become a mentor for subsidiary companies at its sites in 2017
Atomenergoremont JSC 9
CONSYST-OS JSC 8
Energoatominvest LLC 10
Atomtechenergo JSC 7
Zarubezhenergostroy
Rusatom Service JSC 2
VNIIAES JSC 6
Atomenergosbyt JSC 2
EREC JSC
Atomtrans JSC
7
85 ENERGY SAVING AND ENERGY EFFICIENCY ENHANCEMENT
In 2016, the Concern successfully achieved the target cost saving indicator set forth by the Russian Federation Government Program for Nuclear Power Industry Development. The indicator was achieved due to the saving of energy resources in the conditions compa-rable to those of the reference year of 2015. This indicator reached 6.18 % in 2016.
It became possible owing to the actions tak-en to reduce consumption, energy resource losses, increase energy effi ciency of produc-tion processes, and boost power output.
Auxiliary power consumption in 2016 totaled 6.48 % (6.54 % in 2015).
The consolidated energy saving program was implemented by NPPs in the scope sched-uled for 2016-2.12 bln rubles. As part of the program execution, work was continued to upgrade thermal and mechanical equipment, implement energy resource accounting systems, improve lighting systems using LED lights, reduce heat losses in heat supply sys-tems, and replace obsolete thermal insulation.
Moreover, the Concern continued replacing turbine condensers, upgrading pipe systems and superheaters, as well as hydraulic control
systems and turbine protections at several NPPs with a view to improve reliability of main equipment operation, energy effi ciency of power units operation due to higher tur-bine effi ciency ratio, fewer repairs and shorter repair times.
Another energy survey was held in 2016: the energy consumption structure, as well as the energy saving potential and energy effi ciency improvement prospects were adjusted, the Concern’s energy performance certifi cate was updated. Effi ciency of the measures im-plemented / being implemented was assessed, a program for energy saving and energy effi ciency improvement for 2017-2021 was developed.
According to the results of surveillance audit, compliance of the Concern's energy man-agement system with the ISO 50 001:2011 international standard was confi rmed.
ENERGY RESOURCE CONSUMPTION IN 2016
Name Unitsof Measurement
In Kind ThousandRubles
Nuclear power (used as a fuel) Fuel assemblies, pcs 4,619 *
Automotive gasoline (tons) 314 15, 413
Diesel fuel (tons) 9,755 422, 620
Fuel oil (tons) 15, 943 117, 584
Gas (natural) m3 2, 142,811 18, 928
Oil, carbon, shale oil, and peat No purchase
CASE STUDY
The Leningrad NPP presented an ongoing program for energy saving and increasing energy effi ciency of NPPs at the nation-wide energy saving festival #BrighterTogether. The regional round of the festival was held in Sosnovy Bor on September 3, 2016.
The project of the Leningrad NPP and the Sosnovy Bor Citizens association for installation of energy saving LED lamps in the entrance halls of all residential buildings in the town was named by the Leningrad Oblast Government as the region’s best implemented project in energy saving and effi cient electricity use.
The project won the regional round and passed over to the fi nal round of the nation-wide ENES 2016 contest in the nomination for the Best Pilot Project for Energy Saving Technologies Implementation Free of Charge.
* The information consti-tutes commercial secret.
302-2302-1
Rosenergoatom / Annual report / 2016 25 years of safe operation
86 2.2. ENSURING SAFETYOF RUSSIAN NPPS
ENSURING SAFETY WHILE USING NUCLEAR ENERGY IS AN UTMOST PRIORITY OF THE CONCERN’S QUALITY POLICY. NUCLEAR POWER PLANTS, AS BRANCHES OF THE CONCERN, FEATURE FAILSAFE AND SECURE OPERATION IN EVERY ASPECT OF ACTIVITY, INCLUDING ENVIRONMENTAL SAFETY, DURING THE WHOLE LIFE CYCLE.
Policy and Basic Principles of Ensuring Safe NPP Operation
The Concern in its activities consistently and purposefully discharges the obligations arising from the Convention on Nuclear Safety, accounts for the recommendations of the IAEA safety regulations and guide-lines, as well as regulations and principles of the IAEA International Nuclear Safety Group (INSAG) formulated in the Basic Safety Principles for Nuclear Power Plants, and the Safety Culture.
The Concern participates in international co-operation under the auspices of the IAEA in line with the Unifi ed Industry-Specifi c Interac-tion Procedure for Rosatom State Corpora-tion and Its Organizations with IAEA.
Results of 2016
In 2016, the Concern played an active role in preparation of the next (seventh) national
Protection of NPP personnel, population, and environment from radiological hazard by creating and sustaining effi -cient protection means (risk mitigation) at NPPs
Keeping of the exposure doses at the plant and radi-oactive substance emissions during routine operation and emergencies as low as rea-sonably achievable (radiation protection)
Prevention of design ac-cidents, and mitigation of consequences of design and beyond design accidents, ne-cessity of control over devel-opment and consequences of such accidents (technical protection)
MAJOR GOALS OF SAFETY ASSURANCESTATEMENT OF CONCERN’S NPP SAFETY POLICY
The Concern’s priorities objective is ensuring safety of a nuclear power station at all stages of its life cycle.
Updated and enacted by the Concern Order No. 9 / 1346-P dated October 24, 2016
87
3
report of the Russian Federation on dis-charge of obligations under the Convention on Nuclear Safety.
As part of the long-term IAEA Operational Safety Review Team (OSART) program, a fol-low-up visit to the Kola NPP was held in June 2016 by OSART. The visiting team defi ned that recommendations and proposals of the mission held in 2014 were 90 % fulfi lled, with the remaining 10 % being fulfi lled on schedule.
Preparations for the OSART mission are underway at the Leningrad NPP (2017), the
TIMES LOWERWAS THE NUMBER OF VIOLATIONS AT RUSSIAN NPPS DURING 25 YEARS OF THE CONCERN’S ACTIVITIES. MOREOVER, THERE WERE NO EVENTS CLASSIFIED AS INES LEVEL 1 AND ABOVE SINCE 1999
corporate OSART mission (2018) and the OSART mission at the Kalinin NPP (2019).
The Concern ensured failsafe and reliable ope ration of Russian NPPs in 2016. The safe-ty level of operational NPPs in 2016 did not change much, if compared to 2015.
In 2016, as in the previous years, there were no events beyond Level 2 on the Interna-tional Nuclear Events Scale (INES) at the Concern’s NPPs (deviations classifi ed as INES Level 1 and 0 do not endanger personnel, facilities, population and environment).
0THERE WERE NO incidents accompanied by radiation consequences (Regulation NP-004-08), nuclear materials and radioactive substances loss
0THERE WERE NO injuries and incidents at the registered hazardous production facilities of the Concern
0THERE WERE NO malfunctions of safety systems elements that could lead to safety functions loss
0THERE WERE NO events classi-fi ed as INES Level 1
64deviations in NPP operations classifi ed as INES Level 0 / Below Scale20 of them—during low-power testing of the Beloyarsk NPP power unit No. 4 and the Novo-voronezh NPP-2 power unit No. 1
3injuries Kalinin NPP
17unplanned automatic scrams critical7 of them—during low-power testing of the Beloyarsk NPP power unit No. 4 and the Novo-voronezh NPP-2 power unit No. 1
1fi re Kalinin NPP
Rosenergoatom / Annual report / 2016 25 years of safe operation
88
‘08‘09‘10 ‘11‘12
‘13‘14‘15 ‘16224+10*
3
2530
11
21 17
23
1 5
25+4*
3
7+5*
26+4*
2
14
25+13*
2
12
6+1*
2*1
20+2*
18+1*
20+10*
DEVIATIONS AT OPERATING NPP POWER UNITS, INJURIES, UNPLANNED AUTOMATIC SCRAMS, FIRES (IGNITIONS), 2015 / 2016
NPP Deviations Unplanned Automatic Scrams Critical
Injuries (Number) Fires / Ignitions(Number)
2015 2016 2015 2016 2015 / 2016 2015 / 2016
Balakovo 0 3 0 0 0 0 0 0
Beloyarsk 2 1+10* 1 1+3* 0 0 0 0 / 0
Bilibino 1 2 1 2 0 0 0 0
Kalinin 8 14 1 0 0 3 0 / 1 1 / 0
Kola 4 5 0 3 0 0 0 0
Kursk 4 3 0 1 1 0 0 0
Leningrad 8 5 1 1 0 0 0 0
Novovoronezh 1 2+10* 0 4* 0 0 0 0
Rostov 2 3 0 0 0 0 1 / 0 0
Smolensk 4 8 1 2 0 0 0 0
Total 34 46+20* 5 10+7* 1 3 1 / 1 1 / 0* At the low power testing
stage.
CHANGES IN INES DEVIATIONS AT NPPS
36safety inspections were heldin 2016 at the existing nuclear power plants and those under construction by the Concern’s supervisory and operationalcontrol committees.
Level 2 and above
(not available)
Level 1
Level 0
Beyond scale
* Events associated
with low power testing
at the stage of NPPs
commissioning:
Level 1
Level 0
Beyond scale
89
2011 2012 2013 2014 2015 2016
14
10+7*
13
11
87
4
21
109
76
4 43
2
98
76
42
100
109
65
3
1 1000
54
21
000
1514
13
109
6
3
000
4
0
‘92 ’93 ‘94 ’95 ’96 ‘97 ’98 ‘99 ’00 ‘01 ’02 ‘03 ’04 ‘05 ’06 ‘07 ’08 ‘09 ’10 ‘11 ’12 ‘13 ’14 ‘15 ’16
49
30 32
22
34
45
24
14 1713
9 94 3 1 1 1 2 2 2 1
6
16
3
‘92 ’93 ‘94 ’95 ’96 ‘97 ’98 ‘99 ’00 ‘01 ’02 ‘03 ’04 ‘05 ’06 ‘07 ’08 ‘09 ’10 ‘11 ’12 ‘13 ’14 ‘15 ’16
97
8
12
35 5
1 1 1 1 1 1 10 0 0 00 0
2 23 34
„
20
112
012
20
132
014
20
1520
16
Global NPPs Russian NPPs
0.560.61
0.460.20
0.490.29
0.500.26
0.450.15
0.440.31
UNPLANNED AUTOMATIC SCRAMS PER 7,000 HOURS
* Events associated with low power testing at the stage of NPPs com-missioning.
The number of unplanned automatic reactor scrams in 2016 was higher than in the pre-vious fi ve years. This was due to low power testing of the Beloyarsk NPP power unit No. 4 and the Novovoronezh NPP power unit No. 1 during their commissioning. Meanwhile, the average (per 7,000 hours of operation) number of critical reactor scrams (WANO indicator) for Russian NPPs is considerably lower than that for other nuclear power plants worldwide.
Control of Russian NPPs Safety Status
The Concern takes a series of internal and external measures confi rming the compliance with Russian and international requirements for nuclear power plant safety.
Comprehensive and ad-hoc inspections of the NPP safety status carried out by the
operator’s structural units are integral parts of the safety assurance control at nuclear power plants.
NPPs are inspected according to the annual action plan, NPP inspection schedule, man-agement instructions of the Concern and Rosatom State Corporation. Relevant meas-ures were taken in the problem areas discov-ered during the inspections to improve the operational safety at nuclear power plants, including the operating company level.
The results of safety checkups at the ex-isting nuclear power plants, and remedial actions implementation control allow to make a conclusion that the Concern’s NPPs meet the admissible safety level stipulated by the rules and regulations applicable in the Russian Federation to nuclear power use, as well as international requirements and standards.
CHANGES IN UNPLANNED AUTOMATIC SCRAMS BETWEEN 2011 AND 2016
FIRE OUTBREAKS
INJURIES
"Any inspection enables the company managers and workers to look at themselves from outside. The inspection results shall not be separate facts, but analysis and identifi cation of problems".
Pavel Medvedev, Deputy Inspector General – Chief Inspector of Rosenergoatom Concern JSC
Rosenergoatom / Annual report / 2016 25 years of safe operation
90
„SHORT TERM 2011-2012
AIMED AT REDUCING MANMADE RISKS
All NPPs were supplied with additional mobile emergency response equipment.
COMPLETED
MEDIUM TERM 2012-2014
AIMED AT ENSURING NPP SURVIVABILITY
Preparation of design estimates, calculations, analyses and substantiations, supplies of additional equipment, and materials related to design specifi cations.
COMPLETED
LONG TERM 2012-2021
Implementation and introduction at NPPs of additional design solutions, adjustment of emergency response documents.
UNDER IMPLEMENTATION
Increasing Safety and Stability of NPPs against Extreme External Impacts
After the events occurred in Japan, which caused the accident at the Fukushima NPP, the Concern has developed and implemented an analysis of possible accident development scenarios at Russian NPPs against extreme external impacts, determining activities aimed at mitigating consequences and reducing the impact on population and environment in case of a severe beyond design basis accident (Plan of Activities Intended to Improve Safety of Operating NPPs, and Activities Intended to Reduce Consequences of Beyond Design Basis Accidents at NPPs).
The activities scheduled for 2016 were com-pleted.
Each year the Concern updates its activi-ties according to the results achieved in the previous period.
The total of 42.6 bln rubles was spent on im-proving safety of all projects in 2016, including post-Fukushima measures—619.23 mln rubles.
Safety Culture
«Safety is our main value. The goal is a high level of the Safety Culture».
Andrey Petrov, CEO,Rosenergoatom Concern JSC
Safety culture shaping, maintenance and devel-opment lay the basis for ensuring NPP safety.
The Safety Culture Policy of the Concern was created on its top management level (Order No. 9 / 949-P dated August 1, 2016 on Approval and Enactment of Rosenergoatom Concern JSC Safety Culture Policy).
The Concern’s safety culture activities are aimed at shaping and developing of such spe-cifi c functions of the organization and behav-ioral features of every employee that ensure prevention of safety degradation, and constant improvement of NPP safety condition.
THE MEASURES AIMED AT RAISING NPPS TOLERANCE TO NATURAL AND MANMADE IMPACTS ARE TAKEN IN THREE STAGES
91
The level of performance of fi re fi ghting activities associated with rectifi cation of points of criticisms indicated by the state fi re supervision authority is
100%.No industrial accidents at hazardous production facilities operated by the Concern were registered in 2016*.
With a view to streamline the safety culture, a Safety Culture Council was created under the Concern’s CEO, Safety Culture Councils were also established at all NPPs under the CEOs of NPPs. The Councils are focused on creating the conditions required for constant improvement of the safety culture on the corporate, power plant and individual levels, developing the safety culture commitment in the Concern, and bringing in the atmosphere of trust and openness when considering (dis-cussing) the safety related issues.
A socio-psychological study was held in 2016 to investigate how NPP employees assess basic components of safety culture. The study results were discussed at the Safety Culture Council meeting held in September 2016.
A safety culture summary day is held on the annual basis as a meeting among NPP chief engineers and heads of core structural units of the Concern’s Headquarters to summarize yearly results in shaping and maintaining the safety culture.
During the safety culture summary day, expert review of NPP safety culture is per-formed, safety culture achievements are iden-tifi ed in the reporting period, safety culture issues are discovered, and practices of the best NPPs according to the expert review results are distributed.
No cases were reviewed for administrative sanctions, license suspension and / or termi-nation by Rostekhnadzor inspectorates (in relation to physical protection).
* Details of physical protec-tion, fi re safety, and crisis response may be found in the interactive version of the Annual Report.
CASE STUDY
Among the most considerable results in safety culture of the expert commission meeting held on December 7, 2016:
In 2016, safety culture was integrated with
occupational health culture at the Balakovo NPP into a single process with due consideration of the principles set forth in Russian regulations and international standards. Best practices of other NPPs are rapidly studied and introduced.
Among the advantages of the Novovoronezh NPP, the expert commission named the organization of work to involve personnel in ensuring safety, introducing managers' observations of the personnel labor, organizing the institute of safety culture coordinators in NPP structural units. The commission noted the successful completion of the OSART mission.
Novovoronezh Nuclear Power Plant – Branch of Rosenergoatom Concern JSC
Balakovo Nuclear Power Plant – Branch of Rosenergoatom Concern JSC
ROSENERGOATOM CONCERN SAFETY CULTURE POLICY
Achieving and maintaining the global best practice level of NPP safety indicators
Eliminating personnel mistakes and violations of applicable safety requirements
Preventing and eliminating the events infl uencing safety
Creating a working environment aimed at ensuring safety in the Concern
Shaping individual commitment to safety among the Concern's employees
Milestones Stepping stones
Rosenergoatom / Annual report / 2016 25 years of safe operation
Emergency Planning and Response. Concern’s Crisis Center
The Crisis Center, NPPs, and TSCs held emergency prevention drills on a regular basis to enhance coordination and interaction in the conditions of simulated severe accidents. Comprehensive emergency response drills were held in 2016 with the EANPP group at the Beloyarsk NPP to try out interaction of the NPP, EANPP group, Rosatom Emergency Service, local executive authorities, forces and facilities of the Russian Ministries of Emergencies and Defense in cases of emer-gence, prevention, localization and liquida-tion of radiation accidents at NPPs. The drill fully involved specialized mobile emergency response machinery and equipment.
The EANPP group and TCSs participated in 8 emergency response drills and exercises held at Russian NPPs to practice the actions to be taken during the accidents similar to the Fukushima NPP accident, and continue streamlining of the emergency response sys-tem at the Concern’s nuclear power plants.
In 2016, on the basis of the Regional Crisis Center created by the WANO Moscow Center
after the Fukushima NPP accident, the Con-cern’s Crisis Center and TCSs participated in emergency response exercises at three for-eign NPPs: Paks (Hungary), Tianwan (China), Dukovany (Czech Republic).
The Concern’s emergency prevention and liquidation system is a well-coordinated and interconnected system operating 24 / 7 that receives information from NPPs in real time. The Crisis Center monitors the main process, radiation, environmental, and fi re protection parameters 24 hours a day, 7 days a week, which are also submitted to TSCs thus creat-ing a unifi ed information space for all partici-pants of emergency response.
Details of emergency response at Russian NPPs are given in the Concern’s 2014 Annual Report (page 89).
The Concern’s emergency prevention and elimination system currently in place meets all requirements set for the participants of the Unifi ed State System for Emergency Prevention and Response and corresponds to the best global practice.
Smolennsk NPP main control room
93
252.3. RADIATION EFFECT ON PERSONNEL AND POPULATION
YEARS,THE RADIATION ENVIRONMENT IN THE RUSSIAN FEDERATION WAS STEADY ACCORDING TO ROSHYDROMET
During the recent decade, the collective dose reduced
> 3.5 times
0unauthorized exceeding of the reference level of the individual exposure dose (18 mSv per year) is ELIMINATED
0THERE WERE NO cases of unau-thorized release of radionuclides into the environment
>76 %of NPP personnel do not exceed the basic threshold of individual dose load on population of 1 mSv per year
Radiation Impact on Personnel and Population
Results of 2016
The Concern strictly abides by sanitary rules, radiation safety standards and rules with constant monitoring of radiation situation at NPPs and in adjacent areas, personnel doses, radioactive substances emission and dis-charge values.
among all NPPs in 2016 are comparable with similar indicators of the previous year, and are primarily defi ned by the amount of radiation hazardous maintenance work performed at nuclear power plants.
Owing to focused organizational and tech-nical efforts at NPPs, the radiation doses of personnel is steadily decreasing. The val-ues of average individual dose of personnel and average collective dose per power unit
The basic thresholds of NPP personnel exposure doses WERE NOT EXCEEDED
Based on the radiation safety principles adopted by global community, the Concern consistently conducts the policy on imple-mentation and further development of meth-odology on radiation protection optimization at nuclear power plants. The methodology consists in maintaining individual exposure doses and number of exposed persons on the lowest possible levels taking into account economic and social factors.
SAFETY OF PEOPLE AND ENVIRONMENT HAS BEEN THE CONCERN’S ULTIMATE PRIORITY FOR 25 YEARS. IN ITS ACTIVITIES THE CONCERNS ENDEAVORS TO ENSURE THE HIGHEST POSSIBLE RADIATION SAFETY LEVEL FOR THE PERSONNEL OF NPPS AND THE POPULATION IN THEIR LOCATION AREAS, AND TO PREVENT RADIOACTIVE CONTAMINATION OF THE ENVIRONMENT ABOVE THE ADMISSIBLE LEVELS SET FORTH BY THE RADIATION SAFETY REGULATIONS.
DURING THE RECENT
Rosenergoatom / Annual report / 2016 25 years of safe operation
94
‘94‘96
‘95‘97
‘96‘98
‘97‘99
‘98‘00
‘99‘01
‘00‘02
‘01‘03
‘02‘04
‘03‘05
‘04‘06
‘05‘07
‘06‘08
‘07‘09
‘08‘10
‘09‘11
‘10‘12
‘11‘13
‘12‘14
‘13‘15
All NPPs Kur NPP Smo NPP Len NPP Bil NPP Nvo NPP Kol NPP Bal NPP Kln NPP Bel NPP Rst NPP
‘14‘16
1.61 1.56 1.51 1.47 1.45 1.38 1.31 1.3 1.28 1.26
10.28
9.36
8.57
7.81
7.1
6.486.07
5.4
4.83
4.0 3.853.57 3.53
3.31 3.34 3.34 3.19 3.13 3.16 3.19 3.08
4.52
4.063.67
3.43.14
2.912.68
2.452.2
1.87 1.721.861.6
1.32 1.36 1.31 1.331.16 1.15 1.03 0.96 0.81 0.78 0.69 0.73 0.64 0.63 0.59 0.55 0.53 0.51 0.511.13 1.01 1.01 0.84 0.85 0.77 0.78 0.77 0.71 0.63 0.56 0.53 0.57 0.59 0.6 0.57 0.52 0.49 0.47 0.46 0.51
3.2
0.90
.18
0.3
4
0.5
6
0.7
1
0.6
3
0.5
1
0.6
1
2.4
2
3.2
4
4.2
1
1.3
6
0.1
6
0.2
6
0.3
4
0.4
9
0.6
5
0.7
7
0.7
9
2.7
62.9
83.3
9
1.2
3
0.1
5
0.3
10.6
7
0.3
7
0.5
7
0.6
7
0.7
2
2.6
3.1
1
3.1
1.2
1
72.5
> 18 мЗв5-10 мЗв2-5 мЗв1-2 мЗв<1 мЗв
0 00.52.25.1
8.811
76
9 8.34.8 1.9 0.3
15-18 мЗв10-15 мЗв
SLIDING (OVER THREE YEARS) COLLECTIVE RADIATION EXPOSURE AT NPPSBY TYPES OF REACTOR UNITS (PERSONSV / UNIT)
COLLECTIVE RADIATION EXPOSURE AT NPPS IN 20142016, PERSONSV / UNIT
PERSONNEL BREAKDOWN BY DOSE INTERVALS
75,7 % 54 %(2015-242 pers. ,
2016-111 pers.)
2015, 2016-below the critical level
RBMK
all NPPs
VVER
Non-serial (EGP, AMB, BN)
2014
2015
2016
WANO target value, person-
Sv/unit
2015
2016
95 IN ORDER TO DESREASE NPP PERSONNEL IRRADIATION, THE CONCERN HAS DEVELOPED AND IS IMPLEMENTING:
Measures aimed at improving the radiation environment of the process equipment and industrial premises
Measures aimed at reduction of personnel exposure to ionizing radiation fi elds
Organization measures aimed at streamlining radiation safety
The radiation environment in the areas of NPPs shows natural background levels, which are typical for Russia—gamma-radiation in-tensity varied between 0.06 to 0.20 μSv / h.
0,06-0,20μSv/h –gamma-radiation intensity
HISTORY EVOLUTION OF BASIC DOSE LIMITS FOR PROFESSIONALS IN THE USSR / RUSSIA
Document ApprovalDate, No.
Document Name Dose Limits (Roughly 1 R—1 rem—10 mSv)
24.08.1948 No. Т-1031с General sanitary standards and rules for occupational health at Facilities A and B (PO Mayak FSUE)
30 R / yr (0.1 R / day) in case of emergency—25 R / 15 min
10.02.1950 No. 2413с Temporary general sanitary standards and rules for occupational health of personnel working with radioactive substances
30 R / yr in case of emergency—25 R / 15 min
11.04.1954 No. 851с Sanitary standards for enterprise and laborato-ries designing
15 R / yr (0.05 R / day) in case of emergency—25 R / yr
25.06.1960 No. 333-60 Sanitary rules for radioactive substances and ionizing radiation sources handling
5 rem / yr (100 mrem / week) in case of emergency—25 rem / yr
25.08.1969 No. 821А-69 Radiation safety standards (NRB-69) 5 rem / yr (3 rem / quar) in case of emergency response—25 rem / yr
07.06.1976 No. 141-76 Radiation safety standards (NRB-76, NRB-76 / 87)
5 rem / yr in case of emergency response—25 rem / yr
09.01.1996 No. 3-FZ 19.04.1996 GN 2.6.1.054-96
Law on nuclear safety of population, Radiation safety standards (NRB-96, NRB-99, NRB-99/2009)
20 mSv/yr - 5 year average (maximum – 50 mSv/yr) in case of emergency response – 200 mSv
Upon introduction of the standard of 20mSv / yr in Russia in 2000, another reduction in dose limits for professionals occurred—by as much as 2.5 times.
Radiation Control
Information about radiation level at NPP, in the environment, and people exposure levels is obtained through radiation control. Radiation control is aimed at determining the level of compliance with radiation safe-ty principles and standard requirements, including non-exceedance of specifi ed
basic limits of doses and admissible levels for normal operations, procurement of the information required for optimizing protec-tion and making decisions on interference in case of radiation accidents. The NPP design provides for a radiation control system (RCS) in order to ensure effi cient radiation control on a regular and uninterrupted basis, includ-ing safety barriers integrity control.
Rosenergoatom / Annual report / 2016 25 years of safe operation
96 RADIATION CONTROL SYSTEM
For control of dose loads and radiation risks, the Concern’s NPP use the automat-ed system of individual dosimeter control
AUTOMATED SYSTEM OF INDIVIDUAL DOSIMETER CONTROL
(ASIDC) and the automated workstation calculating individual radiation risk (ARMIR AES, version 6.1).
ASIDC:Balakovo NPPNovovoronezh NPPSmolensk NPPBelgorod NPPRostov NPPBilibino NPPLeningrad NPPKalinin NPP ASIDCKola NPP ASIDCKursk NPP ASIDCHeadquarters
THE ASIDC KEEPS RECORD OF AN EMPLOYEE’S INDIVIDUAL DOSE:
• During 1 year;
• During 5 years;
• During the whole period of labor activity.
Concern'sCrisisCenter
Information about personnel exposure at NPPs and contractors that was shaped on the basis of NPP ASIDC data is transferred in the electronic format established by Russian FMBA to:
the Unifi ed State System for Control and Accounting of Personnel and Population Exposure Doses
the territorial bodies of state sanitary and epidemiological supervision (on an annual basis)
Rosatom in the amount and procedure defi ned by Form 10 RTB-5 (Information on Radiation and Toxic Safety Status of Organization) for industry-level statistical survey
INERT RADIOACTIVE GAS EMISSIONS (% OF PERMISSIBLE VALUE)
1.5
6.6 5.4
0.6 0.72.9
7.5 8.66.6
23.526.0
28.6
VVER BN RBMK EGP
2014 2015 2016
Process radiation monitoring
Radiation monitoringof NPP rooms and facilities
Radiation controlof radioactive contamination
Radiation monitoring of environment
Automated radiation monitoring system used outside NPP facilities
Automated radiation control system used at NPP and its facilities
On-line radiation monitoring and laboratory analysis equipment
Automated system of individualdosimeter control
97
PROGRAM FOR PERSONNEL RADIATION SAFETY OPTIMIZATION AT NPPS(NO. AESPRG27K (0405)2015)
Constant control of the population and envi-ronment exposure to radiation is exercised by NPP radiation safety departments and super-vised by state sanitary and epidemiological centers of the Russian Federal Medical-Bio-logical Agency (FMBA) at the Concern’s NPPs and in their location areas.
There are automated radiation control sys-tems (ARCS) in the areas of all Russian NPPs operation. The systems are united into an industry level sub-system with the central control panel located in the Concern’s Crisis Center.
Major requirements for organization, con-trolled parameter range, frequency, tech-niques, and methods of radiation control of the environment in the areas of the Con-cern's NPPs location are defi ned by Proce-dural Guidelines 1.3.2.06.027.0045-2009-Or-ganization of Radiation Control in Nuclear Power Plants Location Areas, coordinated with the Russian FMBA.
There was no unauthorized discharge of radi-oactive nuclides in 2016.
NPP’s radiation impact on the population and environment is made through release of radionuclides into the environment. The main sources of radionuclides in the environment are gas-aerosol emissions and liquid discharg-es by NPPs. In 2016, as in the previous years, gas-aerosol emissions by NPPs and radioac-tive substances discharge into water bodies were considerably lower than the applicable standards.
The Concern takes a conservative approach to accounting of gas-aerosol emissions and
liquid discharges. The approach consists in the presumption of radioactive substances presence in emissions and discharges (even if they are not observed by the existing instru-ments and methods) at the level of 0.5 of the minimum scale value.
The analysis of data on NPP emissions and discharges confi rms the stable and reliable operating level of NPP power units and the effi ciency of protective barriers created to prevent dissipation of radioactive substances.
ARCS stands located in populated areas within the NPP supervised zone are equipped with information panels displaying data about dose intensity at the location. The radiation environment related information is available at the Concern’s website, and at: http://www.russianatom.ru.
Results of 2016
Taking into account the results achieved for streamlining of personnel radiation safety in the conditions of increasing scope of radia-tion hazardous work at NPPs, the operating company developed the Program for Person-nel Radiation Safety Optimization at NPPs (No. AESPRG-27K (04-05)—2015), and its execution was organized.
In 2016, the Concern continued implementing the Action Plan for Introduction of Guidelines for Development and Establishment of Per-missible Standards for Radioactive Substanc-es Discharge to Atmosphere by Rosatom State Corporation.
THE SPECIFIED NPP EMISSIONS AND DISCHARGES CREATE NEGLIGIBLY SMALL DOSES IN THE AREAS OF NUCLEAR POWER PLANTS:
≤ 30 %Maximum emission of inert radioactive gases per years ≤ 30 % of the standard value
≤ 6 %Maximum emissions of iodine compounds ≤ 6 % of the stand-ard value
≤ 0.36 %Maximum aggregate discharge index ≤ 0.36
Improvement of organization of radiation hazardous work
Enhancement of radiation environment of NPP equipment and premises
Reduction of the time of personnel exposure to ionizing radiation fi elds
Improvement of instrumentation and methodological support of the radiation control
Rosenergoatom / Annual report / 2016 25 years of safe operation
98„Update with consideration of the Guidelines for development of standards for allowable discharge of radioactive substances into water bodies for water consumers (developed by Rostekhnadzor) STO 1.1.1.04.001.0948-2013 – Technical Requirements for Effl uent Control Subsystem of NPP Radiation Control System, and MVK 7.3.12-13 – Guidelines for Control of Residual Waters Release
Development and enactment of Guidelines MT 1.2.1.15.001.1049-2015 – Control of Radionuclides Activity in NPP Water Consumption System with Consideration of Background Radioactive Pollution of Water Bodies.
Upgrade of control instrumentation for effl uents released from NPPs (equipment of pioneer NPPs: Balakovo, Kursk and Smolensk – with main complexes of instrumentation for automated radiation control of released effl uents (to be completed in 2017)
With regard to radioactive substances discharge to water bodies in 2016, measures were taken to streamline control and accounting of radioactive substances released into water bodies by NPPs.
«Radioactive waste handling shall be performed so as to prevent excessive burden on future generations. Thus, the generation producing waste shall fi nd and use safe, imple-mentable, and environmen-tally applicable for long-term handling».
IAEA Safety Standards
ANNUAL VOLUMES OF RAW GENERATION BY NPPS OF ROSENERGOATOM CONCERN JSC (M3)
10,022
10,124
10,230
10,538.5
10,482.41
11,601.29
11,863.75
11,839.13
12,172.17
12,553.22007
2008
2009
2010
2011
2012
2013
2014
2015
2016
ACTION PLAN FOR INTRODUCTION OF GUIDELINES FOR DEVELOPMENT AND ESTABLISHMENT OF PERMISSIBLE STANDARDS FOR RADIOACTIVE SUBSTANCES DISCHARGE TO ATMOSPHERE BY ROSATOM STATE CORPORATION (ROSATOM STATE CORPORATION ORDER NO. 1 / 493P DATED MAY 17, 2013)
MEASURES AIMED AT DEVELOPING REGULATIONS AND PROCEDURES FOR RADIATION CONTROL OF EFFLUENTS RELEASED FROM NPPS, AND IMPROVEMENT OF RADIATION CONTROL INSTRUMENTATION FOR EFFLUENTS RELEASED FROM NPPS
Initial data for calculation of maximum permissible emission standards was updated
MT 1.2.1.15.1176-2016 Guidelines for Development and Implementation of MPD Standards for Radioactive Substances by Nuclear Power Plants into Atmosphere were enacted (Order No. 9 / 1786-P dated December 29, 2016)
Automated systems were put into operation for tritium and carbon-14 sampling in the air, as well as devices for information collecting and processing to monitor particulate matter emissions by RKS-07 plants at the level of 10 % of the operating limit as refers to emissions
Technical specifi cations were developed for an automated spectrometer facility for monitoring of class 3H inert radioactive gases emission according to NP-001-15
99 HANDLING RADIOACTIVE WASTE AND SPENT NUCLEAR FUEL
Spent nuclear fuel (SNF) handling is primarily focused on its timely removal from the Con-cern’s NPPs premises, and ensuring nuclear and radiation safety during storage, transpor-tation and processing operations.
Radioactive waste (RAW) handling is primarily focused on gradual decrease in the volume of their production, and conversion of RAW to a conditioned state ensuring safe temporary storage of radioactive waste at NPPs, and their further transfer to disposal facilities of the National Operator for Radioactive Waste Management FSUE.
The Concern equips NPPs with RAW treat-ment facilities, reconstructs the existing and creates new storages for RAW at NPPs, which provide for environmental safety of nuclear power plants throughout the entire period of their operation, and during decom-missioning. All operations related to RAW are carried out in compliance with the applicable federal laws.
RAW management and conditioning tech-niques used at NPPs:Deep evaporation;Cementation;Ion-selective treatment of liquid RAW;Fragmentation;Decontamination;Burning;Compaction;Solid RAW melting.
Results of 2016: SNF Handling Safety Ensured
• Reduction of RAW produced in 2016 equaled 4 % versus 2015.
• SNF volumes removed from NPP sites cor-respond to the level planned for 2016.
• Smolensk NPP commissioned a radioactive waste reprocessing complex (radioactive media reprocessing started).
• Kola NPP completed the reconstruction of the RAW burning furnace.
• Within the Federal Target Program for Ensuring Nuclear and Radiation Safety for 2016-2020, and until 2030, 3,524 m3 of federal RAW were removed from the Balakovo, Leningrad and Smolensk NPP sites.
• As part of the introduction of a new ship-ping packaging set for VVER-1000 / 1200 spent FAs with Uranium-235 initial en-richment of 5 %, U235 burnup of over 58 GWd / t, cold (process) testing of the ship-ping packaging set was held at the Kalinin NPP power unit No. 1.
• Upon readiness of AMB reactors of the Beloyarsk NPP power units No. 1 and No. 2 for SNF removal, a trial batch of spent FAs were removed by PO Mayak FSUE.
• Trial batch of VVER-1000 spent FAs was removed from the Rostov NPP for repro-cessing by PO Mayak FSUE.
Operation of the container storage and seg-menting facility for spent FAs of the Lenin-grad and Kursk NPP SNFS was carried out according to the designed characteristics. The amount of SNF prepared for removal was higher than the amount of SNF received from reactors to fuel storage ponds.
2016 Number of Spent FAs Seg-mented in 2016
Total Number of FAs Seg-mented since Beginning of
Operation
FAs Removed by GKhK FSUE in 2016
Kursk NPP 2,952 8,162 2,304
Leningrad NPP 2,931 11, 207 2,304
CONVENTIONAL NPPS WITH THE LOAD OF 1 GW ANNUALLY PRODUCE:
200kg of plutonium
4.53kg of transplutonium elements
11.25kg of neptunium
82.1kg of fi ssion products
Rosenergoatom / Annual report / 2016 25 years of safe operation
100
1.388KEY FINANCIAL AND ECONOMIC INDICATORS CHARACTERIZING ROSENERGOATOM CONCERN JSC FINANCIAL STATUS, AND EFFICIENCY AND PERFORMANCE, MLN RUBLE
Indicator 2014 2015 2016 Δ2016 / 2015, %
Revenue mln rubles 253,215 263,757 282,036 7 %
Gross profi t mln rubles 105,607 103,616 105,583 2 %
Percent of gross profi t to revenue 42 % 39 % 37 % — 5 %
Business expenses mln rubles –15 –21 –22 5 %
Management expenses mln rubles –11,325 –10,364 –10,004 — 3 %
EBITDA mln rubles 123,969 135,535 134,595 — 1 %
Net profi t mln rubles 9,238 13,922 10,605 — 24 %
Net cash fl ow mln rubles –4,605 12,073 1,807 — 85 %
Net assets mln rubles 1,181,245 1,298,091 1,389,225 7 %
Return on sales (by net profi t) % 3.65 % 5.28 % 3.76 % — 29 %
Return on assets % 19.5 % 18.7 % 18.3 % — 2 %
Return on equity % 0.83 % 1.12 % 0.79 % — 29 %
EBITDA margin (EBITDA / revenue), budget % 44.26 % 43.49 % 41.22 % — 5 %
Debt / equity ratio 0.08 0.07 0.07 0 %
Current liquidity ratio 1.28 1.10 1.84 67 %
Equity mln rubles 1,180,017 1,296,820 1,388,030 7 %
Borrowed funds mln rubles 94,450 87,932 95,131 8 %
2.4. FINANCIAL RESULTS
VALUE CREATED AND DISTRIBUTED BY ROSENERGOATOM CONCERN JSC ACCORDING TO RUSSIAN ACCOUNTING STANDARDS, BLN RUBLES
Item No. Indicator 2014 2015 2016
1 Created economic value 266.5 279.7 294.3
2 Incomes (sales revenue, gains from fi nancial investments, and sold assets)
266.5 279.7 294.3
3 Distributed economic value 160.0 160.3 178.3
4 Operating costs (payments to suppliers and contractors, cost of purchased materials)*
108.8 105.6 120.8
5 Salaries and other payments and benefi ts for employees 27.6 28.6 29.1
BLN RUBLESWAS THE VALUE OF EQUITY IN 2017
* Without depreciation.
101
279,529Revenue Analysis
Revenue from sales of the Concern’s prod-ucts in 2016 totaled 282,036 mln rubles. Revenue from power and capacity sales by Rosenergoatom Concern JSC at WECM,
including Bilibino NPP, for 12 months of 2016 equaled 279,528 mln rubles. This includes revenue from sales of own prod-ucts—276,346 mln rubles, and purchased products—3,182 mln rubles.
ACTUAL REVENUE STRUCTURE
Total revenue from the sale of electricity (capacity) according to accounting statements
Total (mln rubles)279, 528
Including:
— Revenue from sales of own products 276,346
Including:
— Bilibino NPP 2,159
— Regulated contracts (electricity) 8,244
— Regulated agreements (capacity) 22,368
— Day-ahead market 177,591
— Deregulated bilateral contracts 648
— Balancing market 1, 763
— Capacity supply agreements (capacity) 26,096
— Capacity according to competitive capacity offtake agreements 37,477
— Revenue from sales of purchased products 3,183
Including:
— Atomenergopromsbyt JSC 50
— AtomSbyt JSC (former AtomSbyt OJSC) 3
— Regulated contracts (electricity) 140
— Day-ahead market 2,691
— Balancing market 299
MLN RUBLESACTUAL REVENUE IN 2017
№ Indicator 2014 2015 2016
6 Payments to capital providers 1.4 1.5 1.6
7 Gross tax payments (before individual profi t tax and VAT) 21.8 24.1 26.2
8 Investments in communities, including: Donations 0.4 0.6 0.5
9 Retained economic value (sum of Items 1 to 3) 106.5 119.4 116.0
10 Contribution to GDP (sum of Items 5 to 9) 157.7 174.1 173.5
Rosenergoatom / Annual report / 2016 25 years of safe operation
102
159,769
163,216
2015
2016
236
813
2015
2016
1,070
1,130
2015
2016
Revenues from electricity and capacity sales by Rosenergoatom Concern JSC at the WECM totaled 279,528 mln rubles, which is 18,271 mln rubles more than in the previous year.
Key Factors Infl uencing Actual Revenue Increase
VOLUME FACTORS:
PRICING FACTORS:
2. Increased actual capacity supply volume according to the Rostov NPP power unit No. 3 capacity supply agreement
The actual amount of electricity sold in the WECM, including the Bilibino NPP, totaled 199,788 mln kWh during 12 months of 2016.
Over 12 months of 2016, electricity and capacity payments totaled 327,299.98 mln rubles (including the Bilibino NPP, Atomener-gopromsbyt JSC, AtomSbyt JSC with VAT).
Profi t Analysis
The net profi t according to the results of business activities in 2016 totaled 10,605 mln rubles, which is 3,317 mln rubles less than the similar indicator of 2015. The net profi t reduced due to the growth in the balance of miscellaneous income and expenses (increased expenses due to R&D expens-es write-off, and non-refundable VAT with reduction of income from interest earned on deposited funds).
1. deviation of actual electricity supply vol-umes at deregulated prices (day ahead mar-ket and balancing market) for all power units
3,790mln kWh of electricity was supplied by the Beloyarsk NPP power unit No. 4
968mln kWh of electricity was supplied by the Novovoronezh NPP-2 power unit No. 1
Deviation of the actual electricity price in the day ahead market
Actual capacity supplied according to capacity
supply agreements of the Rostov NPP power
unit No. 3, MW
Actual electricity volumes supplied at deregu-
lated prices, mln kWh
Electricity price in the day ahead market,
rubles / MWh
103
91,134MLN RUBLES NET ASSETS VALUE INCREASED
Assets Analysis
According to the accounting balance sheet, the value of net assets as of December 31, 2016 totaled 1,389,225 mln rubles, which is 91,134 mln rubles more than the similar value as of December 31, 2015.
The basic factor infl uencing changes in the net asset value was an increase in the fi xed assets value of 80,783 mln rubles due to the Beloyarsk NPP power unit No. 4 commission-ing.
As of December 31, 2016, the net assets of Rosenergoatom Concern JSC exceeded the registered capital by 1.8 times. This ratio positively characterizes the fi nancial situa-tion, fully meets the statutory requirements for the net asset value of an organization. Taking into account that the net assets both exceeded the registered capital and in-creased during the reporting period, we may say that the fi nancial status of the Concern is healthy.
Over 2016, the asset value increased by 143,424 mln rubles, or 10 %. The increase in the amount of assets is due to growth in the
CHANGES IN ASSETS OF ROSENERGOATOM CONCERN JCS, MLN RUBLES
value of both non-current assets by 9 %, or 124,622 mln rubles, and current assets by 15 %, or 18,802 mln rubles.
An increase in the value of non-current as-sets is caused by the growth in the value of buildings, machinery and equipment by 28 %, or 133,236 mln rubles, due to commissioning of the Beloyarsk NPP power unit No. 4, and accounting of expenses for utility connection to electric grids (Rostov, Beloyarsk, Kalinin NPPs) with simultaneous reduction in the ad-vance payments to suppliers and contractors for capital construction.
As of December 31, 2016, non-current assets totaled 1,472,912 mln rubles, or 91 % of the total asset value.
Over 2016, the current assets value in-creased by 18,802 mln rubles, or 15 %. Short-term fi nancial investments, as part of the current assets, considerably grew over 2016 (13,597 mln rubles allocated according to Rosatom State Corporation fi nancial policy). In addition, growth of other accounts re-ceivable by 8,659 mln rubles due to surplus payment across the consolidated taxpayers group.
NET ASSET VALUE, MLN RUBLES
Indicator Actual Indicator Value Variation
As of December 31, 2016 As of December 31, 2015
Net assets 1,389,225 1,298,091 91,134
Registered capital 793,123 671,517 121,606
Net assets over registered capital
596,102 626,574 –30,47220
16
20
15
20
14
1,259,284
1,348,290
1,472,912
96,543
122,380
141,182
Current assets Non-current assets
Rosenergoatom / Annual report / 2016 25 years of safe operation
104 Structure of Accounts Receivable
Changes in Liabilities
The cost of property of Rosenergoatom Con-cern JSC as of the end of the reporting period totaled 1,614,094 mln rubles. The Concern’s structure of sources of funds is dominated by the equity ratio—88 %.
The equity increased by 91,210 mln rubles in 2016 as a result of construction of fi xed assets and construction work in progress through depreciation deductions and provi-sions aimed at ensuring nuclear power plants safety at all stages of their life cycle, and created according to the Russian Federation Government Regulation dated January 30,
2002 No. 68 on Approval of Rules for Funds Allocation by Operating Companies for Provi-sions Aimed at Ensuring Nuclear Power Plants Safety at All Stages of Their Life Cycle and Development.
Budgeting
In order to achieve key performance indi-cators, the Concern applies a systematic approach to planning and accounting of incomes, costs, and cash fl ows. The budget-ing process is carried out in compliance with industry-level documents of Rosatom State Corporation for the medium-term planning, and it comprises the process of detailed
ACCOUNTS RECEIVABLE BY ROSENERGOATOM CONCERN JSC, MLN RUBLES
CHANGES IN LIABILITIES OF ROSENERGOATOM CONCERN JSC, MLN RUBLES
118,669111
15,620
16,494
13,582
78,6006,099
17,419
14,536
16,652
58,4323,751
19,103
1,180,01712,752
89,992 1,296,82054,06652,556
1,388,03026,696
139,976
25,199
17,141
20152014 2016 20152014 2016
Capital construction advances
Current operations advances
Purchasers and customers
Other debtors
Bad debt provision
Capital and provisions
Short-term liabilities
Long-term liabilities
105
28.2 %quarterly planning of the fi rst year of the business plan developed for three years. The process is run through the Distributed Planning and Budgeting System of Rosatom State Corporation.
The budget, income and expense estimates for manufacturing and sales of products by types of activity across branches, Head-quarters, and the Concern as a whole are developed and approved on the annual basis through corporate procedures in order to execute the Concern’s production program, and guarantee fi nancing of top-priority business and development areas. Cost es-timates are the documents laying the basis for spending funds of the Concern and its branches for the planned period. The com-pany is also engaged in operational fi nancial planning (planning horizon of 1 month).
Funds are spent strictly within the limits communicated to structural units in ac-cordance with the approved consolidated income and expense estimates subject to adjustments made pursuant to the approved procedure. Spending is funded according to the cash fl ow budget.
Expenses of structural units of the Con-cern’s Headquarters and branches are controlled on a monthly basis, consolidated estimates are analyzed and forecasts until the year end are made on a quarterly basis. According to the analysis results, reasons for deviation of actual expenses from the plan are identifi ed with a view to optimize ex-penses and achieve target parameters of the Concern as a whole.
Cost Management in 2016
According to the decisions made at the Growth in Crisis conference of the nuclear power industry leaders, the Strategic Council of Rosatom State Corporation set the objec-tive for the Concern in 2016 to reduce spe-cifi c semi-fi xed costs by 25 % versus 2013 in comparable prices, and on comparable terms and conditions.
In addition, a program for administrative costs optimization (Cost Optimization Pro-gram) was launched, and a challenging task
of increasing labor effi ciency was set at the level of Rosatom State Corporation.
In order to achieve the cost reduction goal across nearly all cost items, the “infl ation minus” principle was planned to be pursued, that is all estimates were initially planned for guaranteed containment of costs below the infl ation level. Moreover, an Action Plan for Reducing Prime Cost of Core Business Prod-ucts was developed, including the measure to cut administrative expenses. Branches and structural units of the Headquarters re-ceived individual tasks for reduction of costs with inclusion in KPI maps.
In order to take measures, the branches constantly controlled the level of expenses, additional corrective actions were taken if necessary, resulting in the actual drop in the specifi c semi-fi xed costs versus 2013 by 28.2 % from 2,325 to 1,670 thousand rubles per MW in prices of 2013, which is 3.2 % more than the target level.
SPECIFIC SEMIFIXED COSTS REDUCED VERSUS 2013
Rosenergoatom / Annual report / 2016 25 years of safe operation
106 2.5. INVESTMENT PROGRAM
THE CONCERN’S INVESTMENT ACTIVITY IN THE FORM OF CAPITAL INVESTMENTS IS AIMED AT IMPLEMENTING THE RUSSIAN FEDERATION PROGRAM FOR NUCLEAR POWER INDUSTRY COMPLEX DEVELOPMENT1. LONGTERM, MIDTERM (THREEYEAR), AND SHORTTERM (ANNUAL) INVESTMENT PROGRAMS ARE DEVELOPED WITH A VIEW TO CONTINUOUS AND MOST EFFICIENT ACCOMPLISHMENT OF THIS OBJECTIVE, AND ACHIEVEMENT OF THE CONCERN’S STRATEGIC GOALS.
The Concern’s investment programs are prepared in full conformity with the strate-gic goals of the Power Engineering Division of Rosatom State Corporation, aimed at providing consumers with electricity and heat produced at Russian nuclear power plants with guaranteed safety as a top priority of its activities.
Distribution of functions among the parties involved in the investment process is regu-
lated by the Investment Agreement between Rosatom State Corporation, Atomenergo-prom JSC, and Rosenergoatom Concern JSC.
Investment activities of the Concern are fi nanced from the Concern’s own funds, from the assets contributed by Rosatom State Corporation, and borrowed funds.
Pursuant to the resolution by the General Meeting of Stockholders of Rosenergoatom
INVESTMENT ACTIVITY (100 %)
Investment projects for contruction of
NPP power units, including the project for
construction a fl oating thermal nuclear power
plant and funding of front-end engineering
and design work for new NPP power units
construction sites
Projects and measures at the existing power
units: investment projects for extention of
service live of generation 1 and 2 power units,
ensuring safe and steady operation of the
existing power units
Investment projects at spent nuclear fuel and
radioactive waste handling facilities
Other investment projects and measures:
facilities conversation, research and
development, preparation of norms and
specifi cations, and accomplishment of other
pre-FEED operations
21%
4%2%
73%
1. Approved by the Russian Federa-tion Government Resolution No. 344-11 dated March 28, 2017.
107
Concern JSC (Minutes No. 16 dated June 27, 2016), the Concern’s profi t of 7,348.5 mln rubles was channeled for fi nancing of the projects and investment program measures of 2016.
The Concern’s investment program for 2016 was approved by the Russian Energy Minis-try Order dated December 14, 2015 No. 954 on Approval of Rosenergoatom Concern JSC Investment Program for 2017-2019 and Changes Made in Rosenergoatom Concern JSC Investment Program Approved by Rus-sian Energy Ministry Order dated December 14, 2015 No. 954.
The planned amount of the investment pro-gram for 2016 totaled 176,466.67 mln rubles, the actual amount of 2016 – 176,705.93 mln rubles (according to the report for 2016 sent by Rosenergoatom Concern JSC to the Rus-sian Energy Ministry).
Meanwhile, the funds of the Rosatom State Corporation’s asset contribution totaling 23,530.1 mln rubles, inter alia, were channeled to investment projects related to construc-tion of NPP power units.
INVESTMENTS BETWEEN 2009 AND 2016
THE ESTIMATED DEMAND FOR INVESTMENTS TO FIXED CAPITAL IN 2017 AND IN 20182019 IS AS FOLLOWS (IN MLN RUBLES, WITHOUT VAT):
Concern’s Investment Projects Financed from Consolidated Investment Resource (CIR) of Rosatom State Corporation
CIR fi nancing totaled 1,762.6 mln rubles.
The following projects were implemented in 2016 by Rosenergoatom Concern JSC (fi nancing totaled 1,508.6 mln rubles, VAT included):
• Construction of the Concern’s Data Pro-cessing and Storage Center (DPC)–1,086.9 mln rubles, VAT included;
• Financing of measures for making decision on resuming the active stage of the Baltic NPP project implementation—421.7 mln rubles, VAT included.
The Power Engineering Division project port-folio fi nanced from CIR is dominated by the DPC project. The project milestones planned for 2016 were passed.
A gate approach to project management is taken in implementing the projects fi nanced
88,297.3
53,239.8
68,496.5
58,207.5
57,208.2
55,297.242,778.7
23,530.1
178,981.2
136,554.3
201,778.4
146,230.5
177,270.3
154,191
121,932.7
128,975
2009 2010 2011 2012 2013 2014 2015 2016
116,618.27in 2017
105,486.76in 2018
135,368.20in 2019
Accet contribution changes, mln rubles Fixed capital investment changes, mln rubles
Rosenergoatom / Annual report / 2016 25 years of safe operation
Company Actions Amount, Mln Rubles, VAT
Included
Atomenergoremont JSC Acquisition of maintenance aids, jigs, fi xtures and tools, etc. 103.1
Atomtekhenergo JSC Acquisition of equipment for start-up and commissioning, etc. 87.6
AtomEnergoSbyt JSC Supporting activities of guaranteeing suppliers in the Kursk, Tver, Smolensk and Murmansk Oblasts
39.6
VNIIAES JSC Creation of a testing laboratory for special assessment of labor conditions, etc.
15.9
Rusatom Service JSCAtomtekhenergo JSC
IT equipment acquisition, etc. 6.6
VPO ZAES JSC Equipment of an independent metal testing laboratory 1.0
from CIR. Control is exercised through achievement of key project parameters when executing the projects in organizations. In 2016, the CIR investment planning and moni-toring process is automated and run with the use of the SIRIUS information system.
The Concern’s subsidiaries within the con-solidated budget of Rosatom State Corpora-tion executed the following projects in 2016 (fi nancing totaled 254.0 mln rubles, VAT included).
109
„2.6. INTERNATIONAL SCIENTIFIC AND TECHNICAL COOPERATION
«I always reiterate Russia’s contribution to scientifi c cooperation. I am thankful for the generous contribution with the outcomes used by all IAEA members».
Yukiya Amano, Director Gen-eral, IAEA
IAEA
The Concern participates in international cooperation under the auspices of the Inter-national Atomic Energy Agency (hereinafter—IAEA) in line with the Unifi ed Industry-Specif-ic Interaction Procedure for Rosatom State Corporation and Its Organizations with IAEA.
In 2016, the Concern played an active role in preparation of the next (seventh) national report of the Russian Federation on dis-charge of obligations under the Convention on Nuclear Safety.
As part of the long-term IAEA Operational Safety Review Team (OSART) program, a fol-low-up visit to the Kola NPP was held in June 2016 by OSART. The visiting team defi ned that recommendations and proposals of the mission held in 2014 were 90 % fulfi lled, with the remaining 10 % being fulfi lled on schedule.
Coordinated preparations for the OSART mission are underway at the Leningrad NPP (planned for 2017), the corporate OSART mis-sion (2018), and the OSART mission at the Kalinin NPP (2019) with international experts involved.
As part of cooperation with the IAEA, 21 international events were held at the Con-cern’s Headquarters and branches, and the Concern’s employees participated in 18 IAEA events abroad in 2016.
WANO
The Concern is the largest WANO member organization in the WANO Moscow Center (hereinafter—WANO MC).
In 2016, the Concern’s top management par-ticipated in all major WANO events (meetings of WANO Main Governing Board, International Council of Technical Managers of Operating Companies and NPPs).
In 2016, Russian NPPs hosted two full-scale peer reviews and one follow-up peer review of WANO.
A key initiative of the year was preparation for the design information inspections taking account of the information on the design of the inspected NPP. The fi rst design informa-tion inspection of a Russian plant will be held at the Kola NPP in 2017.
In 2016, the Concern continued operation of the Regional Crisis Center for NPPs with VVER reactors on the basis of the Con-cern's Crisis Center (8 international emer-gency drills with participation of the Region-al Crisis Center for VVER reactor NPPs). The Concern decided to include RBMK, BN and EGP reactor NPPs into the Regional Crisis Center. The Concern continued supporting the activities of the WANO MC representa-tives at Russian NPPs.
WORLDWIDE STRATEGIC PARTNERSINTERNATIONAL ORGANIZATIONS
Rosenergoatom / Annual report / 2016 25 years of safe operation
EUR
In 2016, according to the resolution by the EUR Steering Committee (EUR—European Utility Requirements, an association of European operating companies created to shape technical requirements for designs of new nuclear power plants) started evaluating project documents of the VVER-TOI reactor for its compliance with the requirements of European operating companies. EDF is a technical leader of evaluation. Among the experts are ČEZ (Czech Republic), MVM Paks (Hungary), GEN energija (Slovenia).
Nuclear Energy Agency under Organization for Economic Cooperation and Development (NEA / OECD)
The Concern takes part in the activities and international projects of NEA / OECD under the auspices of Rosatom State Corporation. A representative of the Concern has been on the NEA / OECD committee on radiation protection and public health since September 1, 2014. In addition, the Concern participates in the NEA / OECD project for Information System on Occupational Exposure (ISOE) In September 2014, the Concern offi cially joined the ISOE European Technical Center. Authorized representatives of power stations (Balakovo NPP, Kola NPP, Kalinin NPP, Novov-oronezh NPP, Rostov NPP) transfer the data to the ISOE through VNIIAES JSC.
111 REGIONAL SCALE STRATEGIC PARTNERS*
Électricité de France (EDF, France)
Iberdrola (Spain)
KEY INTERNATIONAL EVENTS OF 2016
* Details may be found in the interactive version of the Annual Report.
Cooperation with Nordic Countries (Norway, Finland and Sweden)
As part of existing agreements, co-operation of the Leningrad and Kola NPPs was furthered with SSM (Sweden), STUK (Finland), and IPE / NRPA (Norway). Projects were focused on the following areas in 2016: emergency preparedness, decommissioning, radioactive waste handling and disposal, etc. The Con-cern representatives participated in the activities of the Russian-Scandinavian task force for emergency preparedness created by Rosatom State Corporation at the initiative of the Scandinavian countries.
12nd International EDF / WANO Nuclear Safety Conference with the participation of the First Deputy CEO for NPPs Operation
210th International Sci-Tech Conference of the Concern (50 international participants)
3OSART follow-up visit to Kola NPP
4Peer reviews by WANO MC at the Beloyarsk NPP and Novovoronezh NPP, follow-up peer review at the Leningrad NPP
5International insurance inspections at the Beloyarsk NPP and Novovoronezh NPP
63rd International Conference of IAEA on Nuclear Knowledge Management—Challenges and Approaches (a statement made by the Concern)
7WANO International Confer-ence of Technical Managers of Operating Companies and Chief Engineers of NPPs
8Emergency drill held at the Beloyarsk NPP (attended by 24 foreign observers)
9Meetings of steering and coor-dinating committees with major partners: WANO, EDF, Iberdrola, Nordic countries
Rosenergoatom / Annual report / 2016 25 years of safe operation
112 2.7. INTERNATIONAL BUSINESS AND NEW PRODUCTS
Development of new businesses and expansion of foreign presence are among the Concern’s top priorities. Being one of the key participants of the comprehensive proposal of Rosatom State Corporation in the international markets for construction of NPPs abroad, the Concern closely watches the safety, reliability of operation, and quality of servicing of the NPPs constructed abroad under Russian designs. In order to facilitate the access of foreign customers to a wide range of services provided by the Power Engineering Division, Rusatom Service JSC is defi ned as a single industry-wide Integrator of Foreign NPP Servicing Proposal.
New Business Lines Development
Creation and promotion of new products in the domestic and foreign markets, as a special line of the Concern’s development, rapidly go further. Currently, the Division’s new business lines portfolio contains fi ve major areas sur-rounding mainly the Division’s core activities, and several new businesses focused on diver-sifi cation and supporting core activities.
NPPs Servicing Abroad
NPPs Servicing Abroad is one of the Power Engineering Division’s strategic initiatives. It
New Business Lines Development Areas
is executed by the Concern and its subsidiary companies featuring the required competen-cies, and reference experience in implement-ing foreign projects at all stages of the NPP life cycle.
NPP Servicing Abroad is coordinated by the Concern through the International Business and Development Department, and by the Integrator created to facilitate the access of foreign customers to a wide range of services rendered by Russian nuclear power industry organizations.
RESULTS OF NEW BUSINESS LINES DEVELOPMENT IN 2016
6.6
49.4
0.08
56.1
NONNUCLEAR
NUCLEAR
ELECTRICITY DISTRIBUTION
Expanding available competencies and acquiring additional ones in basic markets
NPP SERVICING ABROAD
Using available competencies in new markets
ADJACENT MARKETS
Using available competencies in new markets
ISOTOPES PRODUCTION
Acquiring additional competencies in new markets
DATA PROCESSING CENTER
Expanding available competencies and acquiring additional ones in basic markets
Revenues from new products, bln rubles
NPP servicing abroad, including isotope business and provision of services in adjacent markets
Supplier of last resort
Total
Penetration of B2B and B2C segments with new products
113 RUSATOM SERVICE JSCINTEGRATOR OF NPP SERVICING ABROAD
The basic product proposals aimed at NPPs Servicing Abroad.Rusatom Service JSC is the industry-wide integrator of NPPs Servicing Abroad. Such operations involved 11 countries of the world: Armenia, Belarus, Bulgaria, Czech Republic, Slovakia, Hungary, Lithuania, Iran, China, India, Bolivia.
Rusatom Service JSC is the market leader in Armenia, Iran and Bulgaria.
NUCLEAR INFRASTRUCTURE
PERSONNEL TRAINING
OPERATION
TECHNICAL SUPERVISOR
COMMISSIONING
SERVICING
SIMULATORS
PRODUCT OWNERS PRODUCT INTEGRATOR CUSTOMER
Organizations of the Division—product manufacturers having relevant competencies and reference experience
Specifi c activity (supplies, work, services) offered for sale in line with the NPP Servicing Abroad business
An authorized organization of Rosatom State Corporation for managing NPP servicing abroad. A ‘single window’ for an integrated offer of the Division and international contract execution
A company that is an existing or potential buyer (customer) of the product
Nuclear infrastructureTechnical supervisorPersonnel training
Documentation developmentSimulatorsPersonnel training
CommissioningPersonnel training
Maintenance and repair
Equipment and nuclear fuel quality control
Shaping an integrated offer
Marketing
Market packaging of the product
Interacting with the customer in relation to all matters during the contract making and execution
INTEGRATED PRODUCT OFFER FUNCTIONS
Exploitation
Rosenergoatom / Annual report / 2016 25 years of safe operation
114
BOLIVIA
The fi rst contract for the assessment of the national nuclear infrastructure was signed and executed.The fi rst contract for assessment of the national nuclear infrastructure condition in Bolivia was made between Rusatom Service JSC, a subsidiary of Rosenergoatom Concern JSC, and ABEN on August 3, 2016.Three expert missions were successfully held to assess Bolivia’s nuclear infrastructure condition according to the contract in 2016.
SLOVAKIA
Entry into the Commissioning market (small packages of spare parts and accessories were supplied previously). Two contracts were made for technical support of start-up and commissioning operations during completion of the Mochovce NPP power units No. 3 and No. 4.
BELARUS
The Novovoronezh NPP training center hosted on-the-job training of 72 Belarusian experts as part of the Belarusian NPP construction and commissioning project.
The commission of the Belarusian NPP continues.
Cooperation in the Nuclear Infrastructure area supports the NPP construction project based on the Joint Action Plan for Nuclear Infrastructure Development in 2015-2017. 23 actions were taken in 2016 (training, workshops, technical visits to the Concern’s NPPs and specialized organizations of Rosatom State Corporation). The number of Belarusian experts participating in the actions totaled 130 persons.
LEGEND
Nuclear
Infrastructure
Personnel
Training
Commissioning
Operation
Maintenance and
Servicing
KEY PROJECTS OF 2016 IN NPPS SERVICING ABROAD
115
BULGARIA
Three-year work to substantiate service life extension of the Kozloduy NPP power unit No. 5 was successfully accomplished as part of the contract between the Kozloduy NPP (Bulgaria) and the Consortium of Rusatom Service JSC—Rosenergoatom Concern JSC—Electricite de France.
ARMENIA
An integrated survey of the power unit No. 2 quality control system was performed (Stage 1 completed) according to the contract for the Metsamor NPP service life extension with Rusatom Service JSC.
IRAN
The work slated for 2016 to ensure technical support of the Bushehr NPP power unit No. 1 operation in Iran is completed. A psychophysiological study of Iranian personnel and preparations for the OSART mission were held in 2016 according to the direct contract of the Power Engineering Division organizations (Atomtekhexport JSC, Rusatom Service JSC, Rosenergoatom Concern JSC) and Nuclear Power Production and Development (NPPD) Company of Iran for provision of engineering services and technical support of the Bushehr NPP power unit No. 1 operation.
CHINA
Spare parts were supplied, consultation services and support were provided for the scheduled maintenance of the Tianwan NPP power units No. 1 and No. 2.
Rosenergoatom / Annual report / 2016 25 years of safe operation
116 Isotope Business as a New Business Line
CO60 PRODUCTION AT SMOLENSK AND KURSK NPPSAt present, Co-60 is produced at the Lenin-grad NPP (hereinafter—LNPP). As the LNPP operation period expires in 2024, a project was launched in 2016 to organize Co-60 production at the Smolensk and Kursk NPPs with a view to preserve and increase the share of Co-60 production in the interna-tional market. Moreover, a new contract was signed in December 2016 for Co-60 supply until 2034 worth 73.6 mln USD.
This project implementation provides the Concern with the additional annual revenue of 300 mln rubles.
CO60 PRODUCTION LAUNCH AT BELOYARSK NPP (SCIENCE AND INNOVATIONS JSC)The project is aimed at organizing unique production of Co-60 with a high specifi c activity (over 300 Ci / g) for manufacturing of gamma knife devices used in nuclear med-icine. The Concern plays a key role in this project as the provider of cobalt target irradi-ation services for BN reactors of the Belo-yarsk NPP. The project enabling the Concern to improve cost-effectiveness of BN-600 and BN-800 reactor units was approved by Rosa-tom Council for Development and Globaliza-tion in November 2016.
Liquid RAW Reprocessing as a New Business Line
The analysis of the global market showed the demand for liquid RAW reprocessing services. In 2016, VNIIAES JSC started work to shape the product proposal in this area. As part of shaping the liquid RAW reprocessing ser-vice at mobile plants, laboratory testing of potential sorbents was held at the Kola and Beloyarsk NPPs.
Adjacent Markets
If compared to 2015, the revenue of 2016 grew 4 times, and the order portfolio—2 times. The basic operations are rendering maintenance and repair services. In 2016, the performer of work—Atomenergoremont JSC (a subsidiary of the Concern) made contracts with Kola Mining and Metallurgical Company JSC, Kovdor Mining and Processing Plant JSC, Baltic Shipyard LLC and Atomfl ot FSUE.
Another subsidiary of the Concern, Elec-trogorsk Research and Engineering Center JSC, made great progress in developing and approving product strategies in the Testing Laboratory and Certifi cation Body areas.
Electricity Marketing
In 2016, AtomEnergoSbyt JSC (a subsidiary of Rosenergoatom Concern JSC) continued operations in the status of the “last resort supplier” of electricity in the Kursk, Tver, Smo-lensk, and Murmansk Oblasts. The company’s revenues in 2016 totaled 49.4 bln rubles, which is 7 % more than the target indicators. The project for additional products (B2B and B2C) development was implemented in all branches of AtomEnergoSbyt JSC in 2016. The revenues from this project in 2016 to-taled 80 mln rubles, which is 14 % more than the target level.
The project for construction of the Data Processing Center with the total capacity of 80 MW ensured the entrance to a high added value segment while reducing costs for computing power of the nuclear industry enterprises. There will be 8,000 racks in total. Most of them will be supplied by Rostele-com PJSC under a long-term contract. This allowed to reduce risk load on the project and ensure a stable portfolio of orders in the long run.
CASE STUDY. COBALT60 PRODUCTION AT LENINGRAD NPP
The Leningrad NPP is retaining a 30 % share in the global supply market of cobalt-60 isotope—a product of the high-tech science-based technology, widely used in medicine and industry. Radioactive isotopes can be produced without infl uence on economics of heat and power generation owing to design features of RBMK-1000 reactors, irradiation channels, and physical characteristics of the nuclear reactor core. Having achieved considerable success in arranging cobalt-60 production, the Leningrad NPP took a signifi cant position in the global market with a constantly growing demand.
117
218,5Business Line Revenues from New Products,
Bln RublesPortfolio of Orders for
New Productsover 10 Year Period,
Bln Rubles
2015 2016 2015 2016
NPP Servicing Abroad 5.75 6.6 47.4 56.4
Services in Adjacent Markets (Entry to B2B and B2C Segments with New Products)
0.15 0.08 0.21 —
Electricity Marketing (Supplier of Last Resort)
52 49.4 208.5 162.1
Total 57.9 56.11 257.2 218.5
1. Reduction of the indicator is stipulated by transfer of AtomEn-ergoPromSbyt JSC from AtomEn-ergoSbyt JSC to TENEX JSC.
RESULTS OF NEW BUSINESS LINES DEVELOPMENT ACCORDING TO KEY INDICATORS IN 20152016
BLN RUBLESWAS THE TOTAL VALUE OF THE FINAL PORTFOLIO OF ORDERS FOR NEW PRODUCTS FOR 10 YEARS IN THE NPP SERVICING ABROAD AND SUPPLIER OF LAST RESORT BUSINESS LINES
The fi nal portfolio of orders for new products for 10 years totaled 218.5 bln rubles in NPP Servicing Abroad, and Supplier of Last Resort business lines.
Objectives for 2017 and Medium Term
• NPP Servicing Abroad
Increase in revenues and portfolio of order for 10 years due to conclusion of new con-tracts for assistance in developing the nu-clear infrastructure of newcomer countries, personnel training for the Hanhikivi NPP (Finland) and Rouppur NPP (Bangladesh), servicing of the Rouppur NPP (Bangladesh) and El-Dabaa NPP (Egypt) planned for con-struction, provision of comprehensive tech-nical support of the Akkuyu NPP (Turkey).
• Liquid RAW Reprocessing Services
Promoting the product in the domestic and international markets.
• Isotope Business
As part of the project for organizing Co-60 production at the Smolensk and Kursk NPPs in 2017, operations are scheduled for substantiation of safety of cobalt absorb-ers loading into RBMK reactors, making of the required changes in the conditions of the license, and the fi rst loading of cobalt absorbers into the Smolensk NPP power unit No. 1.
According to the project for organization of highly-active Co-60 production at the Beloyarsk NPP in 2017, work is planned for development of the engineering design of the irradiation devices and protected steel assemblies, as well as substantiation of safety of their installation in BN-600 reac-tor at the Beloyarsk NPP.
SUSTAINABLE DEVELOPMENT MANAGEMENT
3.1. HR Policy __________________________________________________________________________________________121
3.2. Labor Protection ____________________________________________________________________________ 132
3.3. Sci-Tech Policy. Innovations.
Knowledge Preservation and Transfer ____________________________________________________ 136
3.4. Environmental Impact ________________________________________________________________ 144
3.5. Developing Areas of Presence. Charity ____________________________________________ 152
1. No poverty
3.5. Developing Areas of Presence. Charity
4. Quality education
3.1. HR Policy
7. Affordable and clean energy
1.7. Situation in PowerIndustry
10. Reduced Inequalities
3.1. HR Policy
13. Climate action
3.4. EnvironmentalImpact
16. Peace, justice and strong institutions
4.1. CorporateGovernance
14. Life below water
3.4. EnvironmentalImpact
17. Partnerships for the goals
2.6. International Scientifi c and Technical Cooperation4.6. Interaction withStakeholders
15. Life on land
3.4. EnvironmentalImpact
2. Zero hunger
3.5. Developing Areas of Presence. Charity
5. Gender equality
3.1. HR Policy
8. Decent work and eco-nomic growth
2.4. Financial Results3.3. Sci-Tech Policy. Innovations. KnowledgePreservation and Transfer
11. Sustainable cities and communities
3.5. Developing Areas of Presence. Charity
3. Good health and well-being
3.5. Developing Areas of Presence. Charity
6. Clean water and san-itation
3.4. EnvironmentalImpact
9. Industry, innovationand infrastructure
2.4. Financial Results3.3. Sci-Tech Policy. Innovations. KnowledgePreservation and Transfer
12. Responsible con-sumption and pro-duction
2.1. Generating Capacities. Developing Generating Potential
On September 25, 2016, the UN member states adopted the 2030 Agenda for Sustainable Development. It contains a series of goals aimed at liquidating poverty, preserving the planet resources, and ensuring well-being for all. In the relevant sections of the report we describe our activities aimed at achieving these 17 goals.
SUSTAINABLE DEVELOPMENT GOALS
119
Rosenergoatom / Annual report / 2016 25 years of safe operation
120
THE CONCERN FULLY UNDERSTANDS ITS RESPONSIBILITY (ECONOMIC, SOCIAL AND ENVIRONMENTAL) BEING THE PRODUCER OF ELECTRICITY DEMANDED BY THE SOCIETY, AND INFLUENCING THE POPULATION WELLBEING IN THE REGIONS OF BUSINESS ACTIVITIES AND NUCLEAR PLANTS PRESENCE.
sustainability reporting (GRI Standards, integrated reporting);
• Positive interaction with stakeholders.
The matters related to sustainability manage-ment are regularly put on meetings agenda of the Concern’s Board of Directors and direc-torate.
The Concern aims at maximizing its value for the country, stockholders represented by Rosatom State Corporation and Atomen-ergoprom JSC, society, personnel and other stakeholders.
Delineation of functional responsibility areas of sustainable development among core structural units is given below:
• Social responsibility—First Deputy CEO for Corporate Functions;
• Environmental impact, power generation, increasing energy effi ciency—First Deputy CEO for NPPs Operation;
• Economic responsibility—Deputy CEO—Di-rector for Economics and Finance.
Among the strategic goals of the Concern is ensuring safe, effi cient, and reliable opera-tion of existing NPPs, nuclear and radiation safety of facilities which use nuclear power, protection of personnel, population, and environment.
The Concern’s sustainable development activ-ities include:
• Maintaining energy security of the Russian Federation through safe, reliable and effi -cient operation of nuclear power plants;
• Developing the power industry and increas-ing energy effi ciency;
• Minimizing the environmental impact, on the global scale, inter alia;
• Exerting the economic and social infl uence in the regions of presence;
• Corporate social responsibility and effi cient personnel management;
• Increasing the transparency and account-ability of activities, following the best international practices and standards of
SUSTAINABLE DEVELOPMENT MANAGEMENT
20
14
20
15
2016
36,435
35,752
3,161
2,321
2,921
1,956
34,6551,133
3,981
121 „3.1. HR POLICY
“Achievement of the general team results is only possible if all work as a single team. It is the corporate success culture that will help us—a single medium, a single space of sense and culture guiding everybody to effi ciency and competitive ability.Personnel relations come to the fore in the context of austerity and fi nancial resources shrinking. Our employees is the very resource that we will primarily use to pursue our ambi-tious goals”.
Andrey Petrov, CEO, Rosenergoatom Concern JS
The goal of the Concern’s HR policy con-sists in providing the company with com-petent and qualifi ed employees, which is only possible if there is a personnel man-agement system capable of responding to
changing market requirements quickly and properly.
Safety, increase in economic effi ciency in the domestic and foreign markets, stability, and technology leadership remained the main objectives pursuant to the Concern’s devel-opment strategy in 2016. Implementation of these objectives defi nes the priorities in HR management. It is necessary to optimize labor contribution and speed up labor effi -ciency growth in order to meet the Concern’s targets of a 30 % decrease in unit cost, cost-based investments, inventories and process time, and a 30 % increase in labor effi ciency, adjusted free cash fl ow, order portfolio and revenues. In the reporting year, the Concern implemented a program for headcount opti-mization. Meanwhile, the released employees were provided with all the required support measures, including transfers to other NPPs or enterprises of Rosatom State Corporation.
BASIC PERSONNEL INDICATORS AS OF DECEMBER 31, 2016
The main personnel characteristics are provided in Appendix 14.
Total Number of Employees
(Average Headcount)
Total Number of Hired
Employees
Total Number of Fired
Employees
SAFETY
ONE TEAM
ONE STEP AHEAD
RESPECT
EFFICIENCY
ACCOUNTABILITY
Rosenergoatom / Annual report / 2016 25 years of safe operation
122
3
PERSONNEL REMUNERATION.KPI SYSTEM
In order to achieve the planned results, the Division implemented a system for opera-tional effi ciency management and personnel motivation in 2010.
The system is based on the use of key per-formance indicators (KPIs) that permit meas-uring the effi ciency and defi ne performance criteria of each employee. The remuneration process and its relation to personnel perfor-
mance and development became open and transparent. KPI development principles are given in 2015 Annual Report (page 114).
KPI target values for the current and sub-sequent years are based on the out-perfor-mance on the main indicators that charac-terize the target status—implementation of the Concern’s strategic goals. The SAP-based automated performance management
PERFORMANCE MANAGEMENT
PM = KPI + RECORD
What?
What is infl uenced by PM?
How?
KPI
• KPI setting• KPI evaluation
KPI map
Changes in variablepart of salary
Recommendations to talent pool / job appointment decisions
Values
• Assessment of vocationalknowledge and skills
• Assessment of values
RECORD form
Annual KPI bonus Individual development plan
1 2
Final grade A, B, C, D, E
Roundtable Meeting Minutes
123
80,567system is currently implemented in order to enhance convenience, and increase perfor-mance and control over fulfi llment of KPI.
A procedure for the remuneration of the Con-cern’s employees is governed by the Model Regulation on Employee Remuneration at Concern’s Branches, and the Regulation on Employee Remuneration at Headquarters.
The amount of remuneration depends on the position level (with differentiation factors), type of job functions, level of vocational competencies and labor effi ciency (bonus payment), and fulfi llment of assigned key performance indicators (KPI). The evaluation system used to assess managers’ perfor-mance is based on the annual evaluation system (which, among other things, is based on KPI achievement).
The system of incentives is based on bonus-es for achieved KPIs, where each indicator has a weighted value assigned against the
total sum of bonuses. The total amount of bonuses is determined on the basis of the annual total of base salaries for each posi-tion, adjusted by a specifi c coeffi cient; the top limit depends on the position level, and can be as high as 260 % if the target KPI level is achieved. Bonuses are only paid upon achievement of KPI threshold values that are also specifi ed in the individual KPI matrix. If achievements signifi cantly excel the target, the bonus can be increased.
Employee evaluation was essentially changed in 2016 with the RECORD sys-tem: in addition to the employee effi ciency, development of vocational and technical knowledge and skills, evaluation was per-formed according to uniform industry-spe-cifi c values. Top managers, Heritage level reservists, successors for critical jobs were evaluated using the 360-degree method: in addition to self-evaluation and upward feed-back, it stipulates a poll among colleagues and subordinates.
HISTORY
In 2016, the minimum salary of an employee totaled 9,590.0 rubles in the Concern until December 1, 2016, and 10,300.0 rubles from December 1, 2016 (with the minimum monthly wage of 6,204.0 rubles from January 1, 2016 to June 30, 2016, and 7,500 from July 1, 2016).
The Concern’s employee salary averaged 80,567 rubles in 2016. (taking into account regional ratios and Northern allowances), 76,313 rubles in 2015.
MINIMUM AMOUNT OF REMUNERATION BY EMPLOYEE CATEGORY,THOUSAND RUBLES PER YEAR
Employee Category Base Pay KPI Achievement Bonus
2014
Managers 436.4 up 149.4 up
Specialists 226.4 up 44.3 up
Blue collar workers 98.8 up 9.9 up
2015
Managers 456.5 up 149.4 up
Specialists 238.5 up 44.3 up
Blue collar workers 105.2 up 10.3 up
2016
Managers 463.2 up 149.4 up
Specialists 249.9 up 44.3 up
Blue collar workers 115.8 up 10.3 up
RUBLESAVERAGED THE CONCERN’S EMPLOYEE SALARY IN 2016. (taking into account regional ratios and Northern allowances), 76,313 rubles in 2015.
Rosenergoatom / Annual report / 2016 25 years of safe operation
124 PERSONNEL TRAINING
The Rules for Organization of Staff Relations at Nuclear Power Plants governs the activities related to personnel training and psychological support, which are performed according to the requirements of legal and regulatory acts of federal executive authorities, local regulations of Rosatom State Corporation.
Nuclear power plants personnel training is or-ganized and performed by training and appren-tice units (centers) (hereinafter—TAU) having training facilities and resources that allow to successfully perform activities for training and skill sustainment among the nuclear power plants personnel.
In order to implement unifi ed approaches and streamline the regulatory framework for personnel training, the Program for Job Prepa-ration and Profi ciency Maintenance among Rosenergoatom Concern JSC Employees—Ba-sic Requirements was updated and enacted in 2016.
NPP TAUs are staffed with the instructors having the required job experience at NPPs who passed special psychological and peda-
KEY RESULTS OF PERSONNEL TRAINING IN 2016
gogical training. There is an Instructor School operational at the Concern.
According to the operator’s standards, TAUs undergo an accreditation procedure. So far, TAUs of all NPPs are accredited. In 2016, the Novovoronezh, Kursk, Rostov NPP TAUs were accredited, full-scale simulators of the Leningrad and Rostov NPPs are admitted for training.
The Concern prepared and implemented divisional program modules for development of the succession pool, HR schools, as well as leadership and Global Professional programs.
Vocational competencies were developed among the Concern’s employees in 2016 through participation of employees in the vocational skills championships according to the World Skills standards involving 82 em-ployees of the Concern.
Practical solution of complex tasks for en-hancement and maintenance of the desired level of the human factor reliability, including psychological and pedagogical support of
CASE STUDY
In order to promote the RPS methodology, the Concern launched internal coaching in 2016 with 22 internal coaches certifi ed for teaching the Rosatom Production System, and 5 internal coaches certifi ed for teaching managers according to the Manager’s School program
11,428learning and teaching documents were developed
396NPP instructors passed advanced trainig courses
3,400NPP employees passed job training
333NPP employees passed profi ciency maintaining courses at MEPhI
>3,900pers. / courses were held as part of managerial competencies development
125
14,000 pers. 14,000 pers.54% 65%
46%
35%
13,496EMPLOYEES OF THE CONCERNPASSED ADVANCED TRAINING AT EDUCATIONAL INSTITUTIONS
training processes, maintenance and en-hancement of personnel skills, is exercised by psycho-physiological support laboratories (hereinafter—PPSL) at nuclear power plants. Psychological support at nuclear power plants is provided in line with the Guidelines for Psychological and Pedagogical Support of NPP Personnel Training Process (MU-UPP. 05.03.00), and prepared teaching and learning materials with the use of educational fi lms.
According to the operator’s standards, PPSL pass the accreditation procedure. PPSLs of the Novovoronezh, Kursk and Rostov NPPs were accredited in 2016.
The internal personnel training system at nu-clear power plants is based on TAUs, or NPP structural units directly. External training is carried out by educational institutions.
The Concern approved and enacted the Standard List of NPP job positions for which NPP TAUs ensure job preparation and profi -ciency maintenance. Profi ciency maintenance is performed on an annual basis among all employees of nuclear power plants.
For each group of NPP employees, annu-al curricula were developed according to the profi ciency maintenance programs. For operating personnel of NPP main control rooms, the curriculum is at least 96 hours long, including 40 hours of practical training at simulators, with at least 20 hours for other personnel categories.
Qualification maintenance among the operative personnel, who have to obtain Rostekhnadzor permission to conduct the processes, is carried out by NPP TAUs, and among the managers and specialists of nuclear power plants, who hold Ros-tekhnadzor permits that authorize work in the field of nuclear energy use—at the National Research Nuclear University MEPhI on the annual basis. Qualification maintenance among other employees is carried out both in structural units and NPP TAUs.
The Concern’s employees advanced training is performed on a continuous and as-needed basis, but at least once every fi ve years during the whole career of em-ployees.
Among the traditional providers of exter-nal educational services for the Concern are Rosatom CICE&T, Corporate Academy of Rosatom State Corporation, National Research Nuclear University MEPhI.
In order to provide qualifi ed personnel for the infrastructure of the nuclear indus-try in the countries that had decided to construct NPPs under Russian designs, a Consortium of contractors for preparation of the Foreign Customer and Supplier’s personnel was established under the auspices of the Concern. The Consortium consists of Rosenergoatom Concern JSC, Rosatom CICE&T, Atomenergotekhno JSC and VNIIAES JSC.
ROUTINE PERFORMANCE EVALUATION AND CAREER DEVELOPMENT IN 2016
Men
Women
Managers
Specialists
Rosenergoatom / Annual report / 2016 25 years of safe operation
126
8,100
CONCERN’S EMPLOYEES TRAINING IN 2016
Indicator Hours of Training, Total Hours of Training, Per Employee
Total hours of in-house training(in TAU at NPPs and structural units)
2,526,735 71.1
Total hours of training with third-party providers 626,062 17.6
Total hours of training, including: 3,152,797 88.7
Managers 739,983 20.8
Specialists and offi cers 1,164,447 32.7
Blue collar workers 1,248,367 35.1
RUBLES PER PERSONTOTALED THE COSTS OF EXTERNAL TRAINING OF THE CONCERN’S EMPLOYEES IN 2016
In 2016, Rosatom State Corporation re-solved to establish the Technical Academy under control of the Concern in order to develop the Consortium business, reduce operating expenditures and effi ciently use training facilities of the Consortium organi-zations.
In 2016, 15 representatives of nucle-ar infrastructure organizations from 5 countries were trained by the Consortium organizations, over 363 specialists from among operating personnel of foreign NPPs (Iran, Belarus) passed classroom training, 72 specialists of the Belarusian NPP passed on-the-job training at the Novovoronezh NPP-2 power unit No. 1. The Kalinin, Novovoronezh and Rostov NPPs hosted various kinds of practical training of 145 students from Belarus, Vietnam and Turkey.
NPP personnel training also includes psy-chological training provided by experts of the PPSL. In 2016, 9,192 NPP employ-ees passed psychological training in the amount of 3,870 hours.
Psycho-physiological studies (PPS) are held at the NPP PPSL for the employ-ees who obtain Rostekhnadzor permits authorizing work in the fi eld of nuclear energy use, and those NPP employees who may infl uence the nuclear power plant safety.
All heads of structural units admitted to confi dential information are familiarized with the results of PPS studies of their subordinates.
PPSL experts participated in the commis-sions for investigation of 50 violations and 76 deviations in NPP activities, and relevant corrective actions were developed in 2016.
Socio-psychological studies were performed among 3,616 persons employed by core NPP structural units in order to assess basic components of the safety culture. The results were considered at the meeting of the Coun-cil for Safety Culture, corrective actions are being developed.
127 PPS OF EMPLOYEES IN 2016
PPS Attendance
When hired at NPP 273 pers.
Scheduled, according to personnel management schedule 5,969 pers.
Unscheduled, according to the assignment by HR department, heads of structural units
639 pers.
Total for 2016 6,881 pers.
Issued for procurement and extension of Rostekhnadzor permits 447 conclusions
HUMAN RESOURCE DEVELOPMENT
Due to specifi cs of the nuclear power indus-try, the issue of highly qualifi ed personnel availability is one of the most important for the Concern to achieve its strategic goals, and ensure its economic stability. The Concern has a multi-level human resource de-velopment system in place: from professional orientation work with secondary school and university students to personnel preparation for critically important positions at all man-agement levels.
SCHOOL—UNIVERSITY—DIVISION
Professional orientation starts at school: in the cities where NPPs are located ‘nucle-ar classes’ are created to provide a deeper study of physics, and to serve as a basis for holding specialized academic competitions in physics and mathematics for secondary school students. The project provides for complete re-equipment of physics classrooms in schools with advanced equipment and devices, including interactive multimedia and
special tool kits for laboratory and science experiments.
The Engineering Academic Competition spon-sored by the Concern was held in 2016. Over 500 secondary school students from the cities where NPPs are located participated in this academic competition. The Engineer-ing Academic Competition in the academic year of 2016-2017 is included in the List of Academic Competitions for School Students of the Russian Council for Academic Competi-tions for School Students (Level 2): the prize winners of this competition enjoy considera-ble advantages when entering higher educa-tional institutions of the Russian Federation. Moreover, the academic competition results give additional points when getting employ-er-sponsored education in NPP related fi elds of study.
Over 300 students attend leading technical universities according to employer-sponsored contracts with the Concern.
CONCERN’S AWARDS
Leader in the industry-level HR nomination of Rosatom State Corporation—Growth Point (promotion from managerial talent pool)
NPP personnel training aimed at enchancing the level of safety culture is carried out as part of general and specialized courses, and courses devoted to the topics directly related to the Safety Culture subject.
heads of structural units training courses on Creating Leadership in Safety Culture at CICE&T.
485
52
20
1313
9
7
63
8
55.3%
17.9%
68.37%
45.24%
Rosenergoatom / Annual report / 2016 25 years of safe operation
128
>6,000NUMBER OF GRADUATES EMPLOYED IN 2016, PERS. , %
Others (17 universities)
National Research Nuclear University MEPhI
10 base universities
MEPhI branches: Obninsk Institute for Nuclear
Power Engineering, Volgodonsk Engineering
and Technical Institute, Seversk Technological
Institute
NUMBER OF GRADUATES EMPLOYED IN 2016, BY FIELDS OF STUDY, PERS.
The Concern participated in the industry-spe-cifi c TeMP contest of young professionals, which is a large-scale event organized in order to select the best students studying engineering specializations at Russian univer-sities.
In the context of headcount optimization related to implementation of the labor pro-ductivity enhancement program, the number of graduates employed by several NPPs decreased, however, a tougher competition allowed to employ graduates with higher potential, and increased their average grade point (from 4.15 to 4.3) in 2016. Starting
from 2017, the annual number of graduates to be employed will recover (to 300 per-sons).
According to preliminary estimates, education of over 2,500 specialists will additionally be required by 2027 taking into account power units construction abroad.
Nuclear power plants: design, operation and
engineering
Electrical power and electrical engineering
Nuclear power and thermal physics
Thermal power and thermal engineering
Electronics and automation of physical plants
Nuclear physics and technologies
Nuclear reactors and materials
Other fi elds of study (aggregate)
STUDENTS AND GRADUATESPARTICIPATED IN ROSATOM CAREER DAYS IN 2016
2% 2% 2%3%
5%
10%
17%
18%
18%
23%
725
18
139
209
52
1,143
129
In late 2016, the fi rst contest was announced for awarding of corporate student scholarships, and university teacher grants based on the results of the academic year of 2015/2016.
According to the contest results, 15 teachers of the subjects demanded by the Concern, and 40 students (National Research Nuclear University MEPhI with branches in Volgodonsk and Obninsk, Ural Federal University, National Research Tomsk Polytechnic University, and Ivanovo State Power University) received grants in the amount of 200,000 rubles, and scholarships in the amount of 100,000 rubles for an academic year.
GRADUATES EMPLOYMENT PLAN (EDUCATIONAL ORDER IN 20172027). FORECAST
123 Moscow Power Engineering Institute
124 Saint Petersburg Polytechnic University
129 Ural Federal University
152 Volgodonsk Engineering and Technical
Institute
239 Sevastopol State University
524 National Research Nuclear University MEPhI
864 Ivanovo State Power University
944 Other universities (<100 persons employed )
945 National Research Tomsk Polytechnic
University
1178 MEPhI branches
An employee development program is avail-able in the Concern—mentoring. Among the goals are adjustment of employees, ensuring succession of generations, and assisting in development of professional and manage-rial competencies among the employees. In total, 1,143 employees acted as mentors in 2016.
A mentor chosen from among highly skilled employees is assigned to every newly employed young specialist and trainee. The
MENTORING
mentor helps young specialists during their on-boarding period, transfers the knowledge necessary for the specialists to carry out their work, and monitors performance of assigned tasks.
In 2016, a mentoring program was available for the members of the managerial talent pool. Mentoring, as informal tutorship, is ap-plied to high potential employees with a view to create development opportunities, and unveil their leadership abilities.
CASE STUDY
In 2016, the Concern launched a web portal to attract students and graduates of specialized higher educational institutions for apprenticeship and employment—Praktika.rosenergoatom.ru, and 1,063 students were registered for apprenticeship at NPPs. 36 students of specialized higher educational institutions passed apprenticeship at the Headquarters.
Mentoring for trainees
Mentoring for young specialists
Mentoring for newly hired specialists
Mentoring for the succession pool members
and managers
Mentoring for the transfer of critical knowledge
MENTORING TYPES AND NUMBERS OF MENTORS IN 2016
Rosenergoatom / Annual report / 2016 25 years of safe operation
130 CAREER AND SUCCESSION MANAGEMENT. DEVELOPMENT OF SUCCESSION POOL
The career and succession management process has to be organized in order to ensure availability of prepared successors for the man-agement positions. The process also includes management of career expectations of em-ployees increasing their level of involvement.
Development of a strong succession pool is one of the links of career and succession management. The Concern successfully im-plements the unifi ed industry-specifi c system for development of the succession pool for various position levels: Rosatom’s Talents for initial management level, Rosatom’s Capital for medium management level, and Rosa-tom’s Legacy for top management level. The employees who have potential to manage-ment activities, are motivated to achieve high results, professional growth and development become selected to the succession pool. Each year employees are selected to the succession pool.
The information system for career plan-ning and succession based on ETWeb was considerably extended in 2016 (to 9,584 managers). The system enables the career and succession management process au-tomation in the Concern. 8,500 employees are planning their career within the division: from reactor control engineer to deputy
SUCCESSION POOL PERFORMANCE INDICATORS, % OF APPOINTMENTS FROM SUCCESSION POOL IN 2016:
52.63 %Appointments from succession pool to top management level positions
65.6 %Succession pool members ap-pointed to new positions
CEO. 138 managers joined the Concern’s managerial talent pool in 2016, thus increas-ing it to 668 persons in total. 127 managers were appointed to new positions, 6 employ-ees of the Headquarters were rotated from the division enterprises.
Personnel Development Programs
In 2016, the Concern introduced and imple-mented new training formats—case studies, distance learning, Development Days. New formats ensure the development of compe-tencies and skills, save labor hours, cut down travel expenses while maintaining the quality of education.
130 employees of the Headquarters passed case studies—a 4-hour format of education on the job where the participants receive minimum theory and maximum practice.
A distance learning format was actively used in 2016-individual remote studies for employ-ees according to electronic courses.
The distance education covered 10,617 per-sons / courses on 18 subjects.
The Development Day is a day of developing actions when master classes, training and
PERSONNEL DEVELOPMENT MEASURES SUCCESSFULLY EXECUTED IN 2016
• Corporate English language study program. Number of the program participants in 2016-277 persons validated their target level of English profi ciency.
• Trainings in effi cient activity management.• Training in RPS to support conversion into
RPS Division—over 750 pers. / courses.• Mentoring trainings.• Trainings for managers based on Rosatom
values.• Managerial competencies development
program.
ATOMSKILLS 2016 INDUSTRYLEVEL CHAMPIONSHIP
Competencies 9
Concern team 65
among them:
participants 33
experts 33
including:
chief experts 1
Medals:
silver 2
bronze 1
WORLDSKILLS HITECH 2016 NATIONAL CHAMPIONSHIP
Competencies 5
Concern team 17
among them:
participants 6
substitute participants 1
experts 8
independent experts 2
Medals
silver 1
• Modular programs implemented for the managerial talent pool development.
• Directors for personnel of branches and subsidiaries passed the HR School two-year industry-level training program.
• Leadership and globalization development programs executed.
131
10,617case studies are available to help develop the competencies required on the job. The Concern’s Headquarters, Beloyarsk and Smo-lensk NPPs became the pioneers. Number of employees:
• Headquarters—100 employees;
• Smolensk NPP—90 employees;
• Beloyarsk NPP—60 employees.
In 2016, 169 managers of the Concern passed the training in values (at NPPs and the Headquarters).
In 2016, the Concern launched internal coaching (RPS training, managers’ school) with 22 internal coaches certifi ed for teach-ing the Rosatom Production System, and 5
internal coaches certifi ed for teaching man-agers according to the Manager’s School program.
Active efforts were taken in 2016 in rela-tion to Rosatom Values in several areas: work with TOP-1000, integration of Values into HR processes, assessment against values in the ‘360-degree poll’ format (passed by over 240 managers of the top and medium levels), transmission of the Values in the internal communications system.
PERSONNEL INVOLVEMENT (POLL: YOUR OPINION IS IMPORTANT TO ROSATOM)
The Concern studies involvement and satis-faction of its employees on an annual basis through Your Opinion is Important to Rosatom poll. The poll held on the basis of the results of 2016 showed that the Concern, in terms of its working environment and team spirit, remains on the 75% performance level. Ac-cording to the poll results, among the leaders were: the Balakovo, Kursk, Kola, Novovoro-nezh, Rostov NPPs, and Atomenergoremont.
Involvement in RPS
The Involvement in RPS Poll was held in 2016 in order to fi nd bottlenecks and shape pro-posals on enhancing employees involvement in the RPS.
The poll was split in two stages: February and November. Number of participants: 9,795 persons from 24 organizations (Head-
quarters, branches and subsidiary companies, including RPS enterprises—Balakovo and Smolensk NPPs). The poll results showed a positive trend in many factors: attitude to RPS, improvement proposals, RPS tools usage, etc.
The key thrusts of enhancing involvement in RPS in 2016 were:
• apprenticeship at leading sites;
• training of managers in RPS tools;
• development of internal coaching, introduc-tion of mixed (including distant) learning formats;
• strengthening of the top managers’ role as leaders of changes (format of ‘direct com-munications’ with personnel).
PERS./COURSESWAS THE SCOPE OF DISTANCE EDUCATION ON 18 SUBJECTS
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
0
4930
3222
3445
2414
1713
99
43
111
2
2
21
6
16
3
Rosenergoatom / Annual report / 2016 25 years of safe operation
132„«All managers of the indus-try face a goal important for ethics—to be a role model for their employees. As Sergey Kirienko reiterates in his public statements, “…culture cannot be dictated, one can only get addicted to culture».
Jumberi Tkebuchava, First Deputy CEO for Corporate Functions, Ethics Ombuds-man
3.2. LABOR PROTECTION
Ensuring safety of production processes and working conditions for employees, as well as their health protection, is the Concern’s top priority and key operating principle.
The matters of safety and health are in-cluded in the Industry-Wide Agreement on Nuclear Power, Industry, and Science for 2015-2017 made between the employees and employers with participation of Rosa-tom State Corporation.
Injury Rate
In the reporting period, the Concern contin-ued taking regular efforts to enhance the safety level, including implementation of a package of measures aimed at elimination of occupational injuries and the reduction of harmful production factors infl uence on the personnel.
CHANGES IN NUMBER OF INJURIES AT CONCERN’S OPERATING NPPS IN 19922016*
In 2016, 4 incidents occurred with the Con-cern’s employees:
• Kalinin NPP—3 incidents: 1 group incident (1 fatal and 1 severe); 1 severe, 1 light;
• Science and Engineering Center—1 severe.
Causes of incidents:
• Work organization faults;
• Insuffi cient effectiveness of supervision by structural unit heads in relation to equipment and personnel permits;
• Design defects and insuffi cient reliability of equipment.
Fatal Severe Light
* All injures are men.
403-4
133
0.065
NUMBER OF INJURIES AT OPERATING NPPS IN 20072016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Balakovo
Beloyarsk
Bilibino
Kalinin
Kola
Kursk
Leningrad
Novovoronezh
Rostov
Smolensk
Total: 1 1 1 2 6 2 2 1 3
Due to the happened injuries, the Concern has developed and is implementing correc-tive actions (including those to execute the list of tasks by Rosatom State Corporation dated September 7, 2016 No. 1-1 / 51-PP aimed at preventing injuries when perform-ing work with electrically-powered equip-ment) to streamline:
• Structure and organization of electrical-ly-powered equipment operation;
• Organization of training for work with electrically-powered equipment;
• Labor protection management system.
Standard Regulations on the La-bor Protection Committee (Commission) were approved by Order of the Ministry of Labor of Russia No. 412n dated June 24, 2014. The Order was registered by the Russian Justice Ministry on July 28, 2014,
AVERAGED LOST TIME INJURY FREQUENCY RATE (LTIFR)
IN THE POWER ENGINEERING DIVISION IN 2016, WITH THE KPI LIMIT OF 0.15.
No. 33 294, and entered into effect on Au-gust 29, 2014.
Based on the Standard Regulations, labor protection committees (commissions) were established at each NPP by orders of Deputy CEOs—Directors of the Concern’s branch-es—NPPs with due regard to the trade union organization opinion.
Committees are an integral part of the labor protection management system, as well as one of the forms of employees’ participation in labor protection management. Committees operate pursuant to the principles of social partnership.
403-1
Fatal Severe Group Light
Rosenergoatom / Annual report / 2016 25 years of safe operation
134 Contractors’ Personnel Labor Safety
In 2016, contractors’ personnel suffered from 7 injuries:
• At operating NPPs: 4 (1f, 1s),
• At construction facilities of the Concern’s NPPs under construction: 3 (1f, 1s).
Causes of incidents:
• Work organization faults;
• Insuffi cient control by management;
• Non-compliance of sub-contractors with mandatory requirements of project docu-ments specifying the process fl ow for metal structures installation;
• Non-compliance of the general contractor with mandatory regulatory acts when per-forming construction supervision;
• Non-compliance with all mandatory occu-pational health requirements.
The injury rate growth (from 0 to 4) among contractors at the NPPs under op-eration is caused by insuffi ciently effi cient control by managers, defi ciencies in work organization.
The number of injuries among contractors at the NPPs under construction reduced in 2016 if compared to 2015 (from 5 to 3) due to the implementation of typical approaches to the organization of the labor safety man-agement system at NPPs, including:
• Implementation of the Standard Regu-lation on Labor Protection Management System at NPP Construction Sites, enact-ed by the Concern’s order;
• Streamlining of the labor protection management system at construction sites with regard to the system of orders and
CHANGES IN INJURY RATE AMONG CONTRACTORS’ PERSONNEL
NPP Injuries, Total:
2014 2015 2016
At Operating NPPs
Balakovo
Beloyarsk
Kalinin
Kola
Kursk
Rostov
Smolensk
Sub-total 5 0 4
At NPPs under Construction
Beloyarsk, power unit No. 4
Kursk NPP-2
Leningrad NPP-2
Novovoronezh NPP-2
Rostov, power units No. 3 and No. 4
Sub-total 6 5 3
Total 11 5 7
Fatal
Severe
Light
135
LABOR PROTECTION EXPENSES IN 2016, THOUSAND RUBLES
NPP Amount Expense Items
Balakovo 254,414.1 • Performing labor protection activities according to collective agreements;
Ensuring normal working environ-ment;
Improving labor conditions and protection;
Acquiring personal protective equip-ment;
Therapeutic and preventive nutrition;Purchasing detergents and disinfect-ants.
Beloyarsk 232,874
Bilibino 63,090
Kalinin 386,443.5
Kola 307,618
Kursk 347,397.1
Leningrad 388,374
Novovoronezh 426,380
Rostov 198,828.8
Smolensk 348,707
Total: 2,954,126.5
permits, distribution of construction partic-ipants’ responsibilities;
• Execution of the corrective actions plan to implement the list of tasks by Rosatom State Corporation;
• Execution of the measures stipulated by the Comprehensive Action Plan for im-provement of the labor safety management system effi ciency during construction of the Concern’s NPP power units, enacted by the Concern’s order.
According to the results of investigation, on-the-spot checks of the circumstances
and reasons for the incidents, the Concern’s General Inspectorate developed and enacted remedial action programs.
Interaction with contractors on the equip-ment and premises of the NPPs under operation is carried out on the basis of the standard regulation for Organization of Interaction of Nuclear Power Plant on Labor Protection Matters with Contractors Working on Equipment and Premises of Operating NPP. Interaction with contractors at NPP construction sites is carried out on the basis of the standard regulation for Labor Protec-tion Management System at NPP Construc-tion Sites.
• Scheduled solutions were implemented to improve occupational safety and health at operational NPPs and those under con-struction.
• Occupational health and safety checks were performed at NPPs according to the safety inspection schedule for 2016.
• Full-scale application of the occupational safety and health management system started during power units construction.
• A series of measures was taken to imple-ment the Federal Law No. 426-FZ on Spe-cial Evaluation of Labor Conditions.
KEY RESULTS OF 2016 KEY OBJECTIVES ON 2017
• Implementation of a series of measures to ensure appropriate labor conditions for personnel during construction and start-up of NPP sacilities.
• Elimination of pre-conditions for injuries.
• Further performance of special evaluation of labor conditions.
Rosenergoatom / Annual report / 2016 25 years of safe operation
136 3.3. SCITECH POLICY. INNOVATIONS. KNOWLEDGE PRESERVATIONAND TRANSFER
INNOVATION MANAGEMENT IS THE CONCERN’S PRIORITIZED ACTIVITY AIMED AT MULTIPLYING TECHNICAL LEADERSHIP POSITIONS, AND IMPROVING COMPETITIVE ABILITY OF PRODUCTS AND SERVICES IN NUCLEAR POWER MARKETS.
ogy Branch Offi ce, also report to the Director for Technology Development.
The Concern uses various forms of innova-tions implementation in its activities. The focus is placed on innovative development owing to technologies and competencies primarily created during the R&D ordered by the Concern.
In 2016, the Concern continued to line up organization of Innovations Management and R&D process groups: the top-level Regula-tion on R&D Management System and the Regulation on R&D Portfolio Management were developed and enacted.
On the basis of the Long-Term Investment Program, the Concern annually compiles three-year and annual R&D plans.
R&D and Innovations Management. R&D Funding Mechanism, R&D Investments Productivity
Sci-Tech Council (STC) is the Concern’s chief expert body for innovative development. According to the Federal Law No. 317 dated December 1, 2007, it is a permanent consul-tative and advisory body created for meth-odological, information analysis and expert support of the Concern’s activities.
The key tool of innovation management in 2016 was the Program for Innovative Devel-opment and Technology Upgrade in Rosatom State Corporation until 2030 (in Civil Part), which was recommended for approval to the Interdepartmental Commission for Technolo-gy Development under the Presidium of the Russian Federation Presidential Council for Economic Modernization and Innovations of Russia1, and approved by the Supervisory Council of Rosatom State Corporation2.
The Director for Technology Development is responsible for the Innovations Manage-ment function ensuring a functional vertical in the Concern. The Innovative Development Directorate subordinate to him is respon-sible for execution of the industry-specifi c function. The Division for R&D Programs and Innovative Projects Implementation, and the Intellectual Property Division of the Technol-
1. Minutes No. 14-D04 dated June 15, 2016.
2. Minutes No. 85 dated June 28, 2016.
137
494VVER-TOI
At present, engineering development and pre-construction operations are ongoing at the Kursk NPP-2 site (main site of the NPP based on VVER-TOI project), preparations for the VVER-TOI project NPP design and construc-tion are underway at the Smolensk NPP-2.
The Concern is planning to adjust the Kursk NPP-2 power units No. 1 and No. 2 project documents due to application of the turbine plant manufactured by Power Machines PJSC, to implement new regulatory documents re-lated to NPPs safety, and to send the adjust-ed project documents for corporate expert review by Rosatom State Corporation.
R&D priorities in 2016 Completion volume, mln rubles
R&D in relation to NPPs construction (improvement of design and engineering solutions) 66
R&D in compilation, verifi cation, validation of the calculation codes used in substantiation of design and engineering solutions of VVER power units
196
Service life extention for the existing VVER-400, WWER-1000, RBMK power units for 15-30 years, and boosting power and heat output of the existing NPPs
494
Substantiation of VVER-TOI design solutions, preparation for the Kursk NPP-2 construc-tion on the basis of VVER-TOI project
175
R&D for ensuring materials engineering support for VVER construction and fuel supply 55
Substantiation of project solutions of the Beloyarsk NPP power unit No. 4 with BN-800 reactor unit
89
R&D for BN-600 power unit 95
R&D for BN-1200 power unit (substantiation of NPP project with BN-1200 reactor unit, MOX fuel reactor core, conceptual project of the industrial energy complex based on BN-1200 reactor unit
196
KEY RESULTS OF 2016
APRIL
An expert opinion of Russia’s Glavgosexpertiza State Ex-pert Evaluation Department was received on verifi cation of cost estimates for the Kursk NPP-2 power units No. 1 and No. 2.
MAY
A favorable expert opinion of Russia’s Glavgosexpertiza State Expert Evaluation Department was obtained on project docu-mentation for the Kursk NPP-2 Preparation Stage. External Power Supply to Kursk NPP-2. Engineering Survey Complex. FEED and Detailed Design of PS-330 / 10kW.
JUNE
Rostekhnadzor license was granted for construction of the Kursk NPP-2 power unit No. 1.
Rosatom State Corporation permit was issued for con-struction of the Kursk NPP-2 power unit No. 1.
OCTOBER
Rostekhnadzor license was granted for construction of the Kursk NPP-2 power unit No. 2.
Rosatom State Corporation permit was issued for con-struction of the Kursk NPP-2 power unit No. 2.
DECEMBER
It was resolved to use a tur-bine plant manufactured by Power Machines PJSC at the Kursk NPP-2 power units No. 1 and No. 2.
MLN RUBLESSERVICE LIFE EXTENTION FOR THE EXISTING VVER400, WWER1000, RBMK POWER UNITS
for 15-30 years, and boosting power and heat output of the existing NPPs
Rosenergoatom / Annual report / 2016 25 years of safe operation
138
„Fast Breeder Reactors (BN-800,BN-1200)
To date, the Russian nuclear industry has accumulated unique practical experience in creation of fast breeder reactors and their successful operation over a long term. They are expected to enable transition of the nuclear power industry to a closed fuel cycle that will ensure more effi cient use of ura-nium resources, and a solution of environ-mental problems associated with handling spent nuclear fuel and radioactive waste. The fast breeder reactor and closed fuel cy-cle technologies possess a huge innovative potential.
Development and implementation of a new nuclear technology will create technolo-gy-based drivers for the Russian economy that will essentially change the economy development path towards sustainability.
Floating Nuclear Power Plant
In 2015, the Concern continued construction of the fi rst (head) 70 MW fl oating thermal nuclear power plant (FTNPP) based on the fl oating power unit (FPU) with two KLT-40S reactors, and located in Pevek, Chukotka Au-tonomous Okrug.
The Baltic Shipyard LLC building the Academi-cian Lomonosov FPU completed installation of equipment and utility systems of reactor and steam turbine units, spent FA storage facili-ties, deck machinery. Harbor testing of deck machinery and equipment started on June 30, 2016. At the end of the year, a certifi cate was issued of the shipyard and FPU readiness for nuclear fuel loading.
In 2016, waterworks construction was ongoing at the FNPP site in Pevek: a section of the shoreline stabilization structures, the moor-ing approach section for the FPU according to the developed design documents. Budget funds allocated for these purposes were consumed in full. Materials were delivered to the construction site in order to support work before the start of the next navigation season in 2017. In October 2016, design documents development started for the onshore infra-structure of the FNPP. According to the docu-ments, facilities will be built to supply heat and electricity from the FPU to energy grids.
The following list of key events is approved for FNPP in 2017: beginning of comprehensive harbor testing of the FPU, completion of con-struction and assembly work for the mooring approach section, onshore infrastructure facili-ties construction start.
The FNPP commissioning is scheduled for 2019.
In 2016, the Beloyarsk NPP power unit No. 4 with BN-800 fast breeder reactor became the winner of the Power Awards in the Top Plants nominations (Best Plants) of the reputable Power Magazine.
CASE STUDY
On December 2015, an important event occurred in the nuclear power industry—power start-up of the Beloyarsk NPP power unit No. 4 with BN-800 reactor, 35 years after the last fast breeder reactor launch in 1980 (Beloyarsk NPP power unit No. 3). Power unit No. 4 was hooked-up at the minimum level of power output—235 MW.
On October 31, 2016, the Beloyarsk NPP power unit No. 4 with BN-800 fast breeder reactor with the installed capacity of 885 MW was put into commercial operation. Commissioning of this power unit is a milestone in organizing a closed nuclear fuel cycle ensuring a considerable expansion of the nuclear power industry fuel base and a considerable reduction in the number of accumulated RAW.
«BN-800 reactor will live a long and vigorous life. The new power unit is facing many ob-jectives, and many of them are laying outside the production area. This is the unit that will approbate design solutions, closed nuclear fuel cycle elements that will lay the basis for a fully-commercial power unit with BN-1200 reactor—a key feature of the Russian power industry image. Actually, BN-800 enables us to look into the future».
Andrey Petrov, CEO of Rosenergoatom Con-cern JSC
For further shaping of approaches to crea-tion of the two-component nuclear power station ordered by the Concern, a conceptu-al project for the energy complex was devel-oped in 2016 on the basis of a fast breeder sodium cooled reactors with the BN-1200 reactor unit operating in a single closed-loop nuclear fuel cycle with traditional VVER reactors. The obtained results show a high degree of readiness and substantiation of fast breeder technologies. In 2017, the Concern is planning to make a decision on developing a project for an industrial power complex based on a reference power unit with the BN-1200 reactor.
139
8APPLICATIONSFOR INVENTION PATENTS WERE FILED BY THE CONCERN IN THE RUSSIAN FEDERATION
(5 of them have been introduced and are used)
Intellectual Property: Inventions, Know-How, New Technologies
The industry-level Information System for Intellectual Property Rights Management (ISIPRM) is a basic tool for information analy-sis support of the intellectual property rights management. The system was fully deployed in the Concern in 2016. It creates a single information medium for intellectual property rights management within the nuclear power industry. The ISIPRM integrates all processes and procedures for intellectual property man-agement, applied in the nuclear power industry, and stipulated by the applicable laws and local regulations of Rosatom State Corporation.
With a view to increase competitive strength and create conditions for robust development of innovation and technology in the nuclear power industry, it is necessary to commercial-ize intellectual property rights obtained as a result of the work ordered by the Concern.
Protected intellectual property was obtained by the Concern as a result of work perfor-mance by contractors according to R&D con-tracts at the expense of the Concern.
Results of 2016:
• 5 know-hows were formalized in relation to technologies processing a huge innovative potential—fast breeder reactor and closed fuel cycle technologies;
• 8 applications for the Russian Federation invention patents were fi led;
• 3 applications for PC software registration were fi led, three registration certifi cates were received;
• 1 application for the database registration was fi led, a certifi cate of trademark regis-tration was obtained.
Considering the strategic interests of Rosa-tom State Corporation, the Concern start-ed legal protection of intellectual property abroad. In 2015, two PCT applications were fi led to obtain patents abroad. The stage of preliminary international expert review and preliminary international search was passed in 2016 by these applications. Another 5 applications are to be fi led on the basis of protected know-how.
APPLICATIONS FILED IN 20142016
Name 2014 2015 2016
Invention patents obtained in the Russian Federation
6 7 (including 2 imple-mented and used)
1
Utility model patents obtained in the Russian Federation
1 0 1 (including 1 imple-mented and used)
Certifi cates of trademark registration obtained 2 (including 2 used) 2 (including 2 used) 0
Applications for invention patents fi led in the Russian Federation
3 0 8 (including 5 imple-mented and used)
Applications for utility model patents fi led in the Russian Federation
1 2 0
Applications for trademark registration fi led 1 (including 1 imple-mented and used)
0 0
Applications for software and database regis-tration fi led
0 1 4 (including 1 imple-mented and used)
State registration certifi cates for software obtained
0 1 (including 1 imple-mented and used)
3 (including 1 imple-mented and used)
State registration certifi cates for databases obtained
0 0 1
Know-how formalized - - 5
Foreign application fi led, including PCT 0 2 0
Rosenergoatom / Annual report / 2016 25 years of safe operation
140
IN 2016, AS PART OF THE PREPARED STRATEGY FOR DEVELOPING INFORMATION TECHNOLOGIES OF POWER ENGINEERING DIVISION IN 20162019, THE CONCERN WORKED IN FOUR MAIN AREAS: APPLICABLE INFORMATION SYSTEMS, IT INFRASTRUCTURE, INFORMATION SECURITY AND IMPROVING OPERATIONAL EFFICIENCY (COST OPTIMIZATION PROGRAM). ACCORDING TO THE RESULTS OF 2016, ROSENERGOATOM CONCERN WON THE NATIONAL IT LEADERSHIP PRIZE IN THE ENERGY INDUSTRY ENTERPRISES NOMINATION.
INFORMATION TECHNOLOGY
In 2016, according to the approved Roadmap, industry-level information systems deployment was running ahead of schedule—SAP ERP enterprise resource planning system, SAP HCM human capital management system, Unifi ed Industry-Level Electronic Document Flow Management System.
an automated system for NPP personnel skills sustainment.
• Commercial operation of the Unifi ed Indus-try-Wide Electronic Document Management System started in 2016 at eight, instead of planned fi ve, branches of the Concern: the Balakovo, Rostov, Novovoronezh, Kalinin, Kola, Kursk, Beloyarsk and Smolensk NPPs.
Information Systems
Corporate Information Systems
SAP ERP is an effi cient tool in reducing expenditures, increasing the speed and transparency of decision making.
Key Results of 2016 by Industry-Level Infor-mation Systems:
• SAP ERP system introduction one year ahead of schedule in ten branch-es (instead of planned three): at the Beloyarsk, Bilibino, Kalinin, Kola, Kursk, Smolensk NPPs, Directorate of Baltic NPP under Construction, Directorate of Kostroma NPP under Construction, Voronezh Heat Supply NPP, Pilot and Demonstration Engineering Center deployed the SAP ERP system that will meet business requirements for the most recent and reliable information, and enhance the fi nancial and economic management of the Division. The total of 18 business units are located in 9 time zones. At present, the system accounts for over 4.5 thousand users.
• SAP HCM personnel management system was introduced at the Balakovo, Novov-oronezh, Rostov, Bilibino, Kalinin, Kursk, Kola and Smolensk NPPs, the Voronezh Heat Supply NPP, and the Directorate of Kostroma NPP under Construction in 2016. Moreover, 5 plants introduced
Single ERP platform
Detailed and transparent routine report-ing
Planning and control of ac-tion taking
Information access man-agement
Centralized and decentralized pro-cesses
Financial fl ows management
Expense planning and accounting
According to the results of 2016, Rosenergoatom Concern won the national IT leadership prize in the Energy Industry Enterprises nomination.
141 Over 13 thousand users (one-fi fth of the system users across the industry) are connected to the system, which ensures transition of branches to unifi ed electronic document management. Introduction of the Unifi ed Industry-Wide Electronic Document Management System at the Bilibino NPP and the Pilot and Demonstration Engineer-ing Center is scheduled for the fi rst quarter of 2017. This will fi nish the System deploy-ment in the Concern.
Divisional Information Systems
Creation and introduction of divisional in-formation systems in 2016 were carried out according to the Road Map for 2016-2018.
Key Results of 2016 by Divisional Information Systems:
In 2016, according to the Roadmap, the Concern continued implementing and launched new division-level projects that will allow to increase effi ciency of the enterprise business processes with unconditional safety of NPPs operation according to the Concern’s priorities.
• An archive of technical documents govern-ing safe operation of nuclear power units was created. It was implemented as part of the Automated System for Technical Doc-uments Management (ASTDM). By the end of 2016, over 3.5 thousand employees of the Concern operated the ASTDM storing over 280 thousand technical documents.
• The Automated System for Facilities Con-struction Monitoring and the Information System of Project Portfolio Management are created and being implemented in order to supply the NPP project partic-ipants with reliable and timely informa-tion required to identify risks and make effi cient managerial decisions related to time and cost management, as well as to increase the effi ciency of capital construc-tion processes.
DIVISIONAL PROJECTS
New business lines
Capital construction + upgrade
Monitoring + emergency response
Operation experience analysis Operations support
Marketing and corporate governance (ERP + HR + organizational and adminis-trative documents + …)
Cost optimization program
Process optimization (RPS)
IT assets upgrade
Information security
Rosenergoatom / Annual report / 2016 25 years of safe operation
142
40
• A prototype of the system for non-struc-tured data search in various information sources with the use of HP Idol is created and tested at the Headquarters and two NPPs.
IT Infrastructure
Key Results of 2016:
• Terms of reference are developed and approved for design of a disaster-proof IT infrastructure of the Concern on the basis of the federal-level Data Processing Center at the Kalinin NPP. The project is being exe-cuted in 2017.
• Communication channels upgrade, includ-ing the one to Bilibino NPP, enabled intro-duction of the SAP ERP system one year ahead of schedule.
• The fi rst stage of the virtual desktops sys-tem was deployed, which allowed to meet the requirements of Rosatom State Corpo-ration for increasing information security in the shortest time possible.
• The International Sci-Tech Conference 2016 was held and broadcast online.
Information Security
The Concern continued working on the upgrade of the integrated system of infor-mation security according to the guidelines
of the Russian Federal Service for Technical and Export Control, and the Industry-Lev-el Requirements for Information Security. The network traffi c protection and fi rewall systems were modernized in order to protect the corporate network perimeter with due consideration of new challenges and cyber threats.
A series of measures were taken with a view to improve the protection of information / au-tomated systems of the Concern for confi -dential information processing.
We ensured operation and upgrading of anti-virus tools, and unauthorized access protec-tion tools. Monitoring, analysis, and review of the information security incidents are carried out on a regular basis.
Boosting Operational Effi ciency
Despite the accelerated pace of IT projects execution, the Power Engineering Division cut down the operational expenses and outstripped the Cost Optimization Program. The Concern successfully performed the centralized purchasing of cellular communi-cation services, having reduced the expenses by more than 4 times. IT assets management solutions allowed to maintain the previous year’s level and decrease IT service expenses in the amount of 40 mln rubles. Internet and telephone expenses were reduced, and lan-dline communication channels related costs were optimized.
KNOWLEDGE MANAGEMENT SYSTEM
In the context of Rosatom State Corpo-ration’s active expansion in international markets, it is necessary to ensure effi cient protection of intellectual property rights and shape the company’s intellectual assets. Therefore, a nuclear knowledge management system (hereinafter—KMS) was created in the industry and implemented by the Concern in 2015 (see fi gure below).
So far, tools have been created to collect, store, and share the knowledge both formal-ized (through databases, information storag-es, etc.), and non-formalized (through expert institutions, expert directories, mentoring systems, professional network communities, etc.).
MLN RUBLES WERE SAVED IN IT SERVICE COSTS IN 2016
143 KMS SHAPING DIAGRAM
WHAT IS DONE IN 2016 AS PART OF THE KNOWLEDGE MANAGEMENT SYSTEM (KMS)
Intellectual property identi-fi cation and protection:
• ISIPRM• Anti-plagiarism• Questel
Technology transfer:
• Online store of tech-nologies
Involvement of intangible assets into sales turnoverReceiving additional revenues owing to the division’s intangible assets promotion in non-tradi-tional markets
R&D quality enhancement• Plagiarism identifi cation in R&D• Useable search in the indus-
try-level intellectual property• Integration with the Unifi ed
State Information System for Accounting of R&D under the Russian Federation Ministry for Education and Science
Consolidation of the unifi ed database management system content• Semantic full-text search
of internal and external sci-tech information
• ‘Single window’ princi-ple-based search
Reduction of knowledge loss risks• Audit of available competen-
cies / technologies• Transfer of NPP operation
skills to the youth• Providing the employees with
knowledge exchange tools accredited for information safety
Knowledge formalization:
• Corporate library of sci-tech information
• EL SEVIER
Knowledge elicitation:
• Archives digitalization• Preservation of critical
knowledge• Social network
1Two projects were implemented in the critical importance knowledge preservation area (see description in Section 3.1).
3The Concern participated in the 3rd international IAEA conference for nuclear knowledge manage-ment—Challenges and Approaches—with the state-ment: Concern’s Innovate Activities in Substantia-tion of NPP Safety. Strategy and plans for Nuclear Knowledge Management.
2There is an Innovations Management subsection on the Concern’s website, Knowledge Management System section.
4The Concern’s column was created on the web portal of Rosatom State Corporation www.innov-rosatom.ru (Innovate Vertical / Rosener-goatom Concern JSC).
Rosenergoatom / Annual report / 2016 25 years of safe operation
144 3.4. ENVIRONMENTALIMPACT
THE PURPOSE OF THE CONCERN’S ENVIRONMENTAL POLICY IS TO PROVIDE THE LEVEL OF NPP SAFETY WHEN THE IMPACT ON THE ENVIRONMENT, PERSONNEL, AND POPULATION WOULD BE MINIMAL IN THE SHORT AND MEDIUM TERMS, THUS CONSERVING NATURAL SYSTEMS AND SUPPORTING THEIR INTEGRITY AND LIFESUPPORTING FUNCTIONS.
The share of NPPs in the amount of pollutant emis-sions into the atmosphere by all Russian enterprises was
< 0.01 %
If compared to other enterpris-es of the Russian Federation (usually some 3.5-4%), the share of contaminated wastewater (0.09%) was
42 times lower
Main Goals and Objectivesof Environmental Policy
The Concern’s Environmental Policy (EP) ensures implementation of the basic provi-sions of the Russian Federation Constitu-tion and laws, defi nition of main principles and obligations in the area of environmen-tal protection, assurance of environmental safety, and sustainable development of the company.
A new revision of the Environmental Policy was enacted in 2016. The diagram for En-suring Environmental Safety at All Stages
of Life Cycle of Nuclear Industry Facilities is given in 2015 Annual Report of the Concern (page 98), the Environmental Policy Implementation System of Rosa-tom State Corporation is also given there (page 99).
Results of 2016
NPPs were operating in a safe and reliable manner, making as low environmental im-pact as possible. Operating activities were carried out in unconditional compliance with standards and rules of the applicable environmental laws.
OBJECTIVES RESULTS OF 2016
In 2016, actions were taken according to the Compre-hensive Plan for Implementation of the Environmental Policy of Rosatom State Corporation for 2016 and until 2018, referring to Rosenergoatom Concern JSC and its branches—operating NPPs
Compliance with applicable standards for admissible impact on the environment
The amount of atmospheric pollutants emission by the nuclear power plants does not exceed the permitted values and is considerably lower than the limits set by the environmental authorities
Compliance with the requirements of laws and regula-tions of the Russian Federation, international treaties and agreements of the Russian Federation, national and industry-level standards and rules for natural re-source use, environmental protection, personnel andpopulation health
NPP production activities in 2016 were carried out in unconditional compliance with standards and rules of the applicable environmental laws
CONCERN’S KEY OBJECTIVES IN ENVIRONMENTAL PROTECTION AREA AND RESULTS OF 2016
145
NPPS OF ENVIRONMENTAL EXCELLENCE
According to the results of the annual contest for the Nuclear Industry Organization of Environmental Excellence held by Rosatom State Corporation, the fi rst place was taken by the Rostov NPP, in the special nomination for the Rosenergoatom Concern JSC Organization of Environmental Excellence—by the Smolensk NPP.
3,447MLN RUBLESENVIRONMENTAL PROTECTION EXPENSES BY NPPS IN 2017
OBJECTIVES RESULTS OF 2016
Reduction of NPPs impact on the environment, envi-ronmental issues settlement
The Kalinin NPP launched a complex of treatment facilities unparalleled in the industry in terms of the pro-cess automation and wastewater treatment level. The expenses for the project implementation totaled 90 mlnrubles. The Kalinin NPP became a pilot site for Rosatom State Corporation enterprises for implementation of this nature protection project.The Beloyarsk NPP started work for implementation of new modern ionites and measures to tune water purifying fi lters operation modes with new sorbents. For additional information see Section 2.3-Radiation Effect on Personnel and Population.
Streamlining and effi cient operation of the environ-mental managements system
Surveillance audits were passed by certifi ed environ-mental management systems of the Concern’s Head-quarters and operating NPPs.A new revision of the Concern’s Environmental Policy was developed and enacted by the Concern’s Order No. 9 / 1487-P dated November 17, 2016.
Streamlining of environmental monitoring, radiation and industrial environmental monitoring methods and techniques
A new revision of the Guidelines for Organization of Industrial Environmental Monitoring at Nuclear Power Plants MR 1.3.2.09.1159-2016 was developed andenacted by the Concern’s Order No. 9 / 1667-P dated December 14, 2016.Additional information on radiation industrial monitor-ing see Section 2.2-Ensuring Safety of Russian NPPs, and Section 2.3-Radiation Impact on Personnel and Population
Streamlining of the system for ensuring the Con-cern’s NPPs readiness for natural and maninduced emergency response
For additional information see Section 2.2-Ensuring Safety of Russian NPPs
Increasing effi ciency of interaction with public or-ganizations and associations, as well as population in relation to ensuring environmental safety and occupational health
For additional information refer to Section 4.6-Interac-tion with Stakeholders
Streamlining of the system for intake, treatment, attestation and admission of personnel to operation of environmental protection facilities of the NPP equipment Increasing the level of environmental ed-ucation and safety culture among the personnel, and environmental enlightenment among the population
The fi nal round of the 3rd professional skills competitionfor the Best Expert in Environmental Protection and Environmental Safety of NPPs was held at the Balakovo NPP (October 18-20, 2016, Balakovo NPP). The Rostov NPP took the fi rst place in the team rating.
Deepening cooperation with international organiza-tions and using international experience when solving nature protection issues
A statement on Environmental Safety of Russian Design NPPs was delivered at the Nuclear Power Industry Week hosted by the Engineering Faculty of the University of Alexandria (April 10, 2016, Alexandria, Egypt).A statement was delivered on Environmental Safety at Russian NPPs during the workshop devoted to Russian nuclear technologies in Indonesia (December 8-9, Jakar-ta, Indonesia).
2014
2015
2016
Water Consumptionin water recycling systems
358.9
410.4
474.1
32,469.1
4,267
Standart
4,290
1,1321,314
4,291
Actualemissioms
1,514
28,777.8
31,203.4
Water Consumptionin reused water systems
Rosenergoatom / Annual report / 2016 25 years of safe operation
146
VOLUME OF POLLUTANT EMISSIONS INTO ATMOSPHERE BY NUCLEAR POWER PLANTS IN 20142016, T
TOTAL VOLUME OF MULTIUSABLE AND REUSABLE WATER, MLN М3
ATMOSPHERIC EMISSIONS OF POLLUTANTS
Gross atmospheric emissions of pollutants at all NPPs did not exceed the standard values in 2016.
The amount of atmospheric pollutants emis-sion by the nuclear power plants does not exceed the permitted values and is consider-ably lower than the limits set by the envi-ronmental authorities. The bulk of pollutant emissions at NPPs are attributed to boiler houses, boiler facilities of health and recre-ation resorts, and standby diesel generator plants started on an occasional basis for scheduled test runs. Contribution of NPPs in atmospheric pollution, if compared to all sectors of the national economy, remains negligibly low.
Nuclear power plants strive to further reduce harmful effect on the atmosphere: we are improving the technology used for increasing effi ciency of fuel combustion, use fuel oil of higher quality (with a lower sulfur content),
MAIN INDICATORS OF ENVIRONMENTAL IMPACT
improve technologies used in painting, put into operation effi cient gas cleaning and dust capturing units.
Discharge of Pollutants into Waters
Nuclear power plants are large water consum-ers, therefore, the issues of water consump-tion and water disposal play an important role in environmental activities. Almost all water extracted from water bodies (over 99 %) was used at NPPs as industrial water (cooling of process media in turbine condensers and heat exchange equipment) and returned to water bodies.
2014
2015
7.36.8
3,141
3,406
11.8*
11.8*
11.5*
7.5
1,818.9
1,683.3
1,665.6
4,654.1
5,149.5
5,234.4Sea water
Fresh process water from natural bodies of water
Potable water from natural water sources* Including ground water
Potable water from water supply utility systems and other water supply systems
2015
2016
2014
6,492.3
6,851.9
6,918.3
2016 3,447
147
ENVIRONMENTAL COSTS,MLN RUBLES
EMISSIONS OF NOX, SOX, AND OTHER SIGNIFICANT POLLUTANTS INTO ATMOSPHERE, T
Indicator 2014 2015 2016
Sulfur dioxide 723.3 613.6 463.5
Carbon oxides 143.0 143.3 146.1
Nitrogen oxides (in NO2 equivalent) 229.9 222.8 213.6
Hydrocarbons (excl. volatile organic com-pounds), including:
238.0 162.4 164.0(methane)
methane 230.3 161.9 164.0
Volatile organic compounds 90.9 102.9 70.1
Other gaseous and liquid 25.5 23.8 24.1
Total 1,450.6 1,268.8 1,081.4
EMISSION OF OZONEDESTROYING SUBSTANCES (ODS) IN 20142016
Name of ODS ODS Emitted, T
2014 2015 2016
HCFC-221 6.943 7.446 10.729
Total, including ODP 6.943х0.055=0.382 7.446х0.055=0,410 10.729х0.055=0.590
HCFC-141b2 0.170 1.670 1.745
Total, including ODP 0.170х0.11=0.019 1.670х0.11=0.184 1.745х0.11=0.192
HCFC-142b3 0.465 0.805 0.015
Total, including ODP 0.465х0.065=0.030 0.805х0.065=0.052 0.015х0.065=0.001
1. HCFC-22-difl uorochloromethane (ODP = 0.055);
2. HCFC-141b—1,1-dichloro-1-fl uoroethane (ODP = 0.11);
3. HCFC-142b—1-chloro-1,1-difl uoroethane (ODP = 0.065).
USE OF WATER BY SOURCES, MLN М3
Rosenergoatom / Annual report / 2016 25 years of safe operation
148
6,508.8MLN М3
OF WATER WERE REMOVED IN 2016
SEA / POTABLE WATER WITHDRAWAL AND DISCHARGE
NPP Water Bodies Withdrawal Discharge
Balakovo Saratov Reservoir
Beloyarsk Beloyarsk Reservoir
Olkhovskoye Swamp
Bilibino Reservoir on Bolshoi Ponneurgen Stream
Bolshoi Ponneurgen Stream
Kalinin Kalinin NPP Reservoir (heat sinks)
Volchina River, Khomutovka River
Kola Glubokaya Bay of the Imandra Reservoir
Molochnaya Bay of the Imandra Reservoir
Kursk Seym River
Leningrad Koporye Bay in the Gulf of Finland, Sista River, Kovashi River
Kopanskoye Lake
Peipia River
Novovoronezh Don River
Rostov Tsimlyansk Reservoir
Heat sink of the Tsimlyansk Reservoir
Smolensk Reservoir on Desna River
Nuclear power plants do not make a consider-able impact on water sources. The water sourc-es used by NPPs do not belong to protected areas. Nuclear power plants have no effect on the wetlands included in the Ramsar List.
In 2016, NPP wastewater disposal was within the limits of water balance and the amount of generated power, and totaled 94 % of the volume of water used. It is a good indicator of water resources use. Water resources were used in compliance with the limits es-tablished by environmental authorities.
Waste waters of household sewage and storm water drainage were treated before
their discharge into surface waters at all NPPs. Control of the content of pollutants entering surface water with waste waters from NPPs was effected in accordance with duly agreed and approved rules.
All water reservoirs used for process and re-cycling water supply at nuclear power plants (except for the Leningrad and Bilibino NPP) are included in the List of Water Reservoirs (including Water Reservoirs with Capacity Ex-ceeding 10 mln m3), subject to development of the rules of use for each water reservoir (several reservoirs, reservoirs cascade, or waterworks in case their utilization modes eliminated the possibility of separate opera-
TOTAL VOLUME OF MULTIUSABLE AND REUSABLE WATER, MLN М3
Water Consumption 2014 2015 2016
In water recycling systems 28,777.8 31,203.4 32,469.1
In reused water systems 358.9 410.4 474.1
149
0.14%
52.99%
0.19%6.22%
40.46%
19,426.7
36,902.9
384.3
34,674.5
13.31,411.2
19,882.3
1. Approved by the Russian Feder-ation Government Directive No. 197-r dated February 14, 2009.
PRODUCTION AND CONSUMPTION WASTE BY CLASSES, T
Indicators 2014 2015 2016
Class 1 56 47 53
Class 2 256 131 68
Class 3 1,369 2,795 2,296
Class 4 15,406 12,782 14,931
Class 5 17,043 29,501 19,555
tion)1. Operation of waterworks at federal wa-ter bodies imposes additional responsibility on nuclear power plants for preservation and rational use of water resources, cleanliness of water protection areas, etc.
In 2016, the total of 6,508.8 mln m3 were re-moved, and the share of contaminated waste water was equal to 0.09 %.
6,497.5 mln m3 of partially clean waste water and 5.2 mln m3 of waste water treated to standard quality were discharged into water bodies in 2016, including:
• 4.0 mln m3 at the mechanical water treat-ment facilities;
• 1.2 mln m3 at the biological water treat-ment facilities.
The discharge volumes of polluted waste waters are steadily reduced thanks to con-sistent modernization and reconstruction of waste water treatment facilities at NPPs.
Handling Production and Consumption Waste
As far as handling production and consump-tion waste (hereinafter—waste) is concerned, NPPs effect their environmental protection activities in accordance with legislation of the Russian Federation in the area of environmental protection, and based on
the license and approved draft standards for waste generation and limits on waste emplacement.
Like any other enterprises, nuclear pow-er plants generate waste of fi ve hazard classes, resulting from their production activities. In 2016, nuclear power plants produced 36,903 t of waste, which is 8,353 t more than in 2015 (45,256 t). A consider-able decrease was observed at the Lenin-grad NPP in the amount of class 5 waste (virtually non-hazardous)—waste (residue) of water treatment in the process of me-chanical purifi cation of natural waters that were provided for use to an independent organization.
The main volume (93.45 %) of waste gener-ated in 2016 consists of class 4 waste (low hazardous waste) and class 5 waste (virtually non-hazardous waste).
Waste is sourced from auxiliary structural units and units supporting nuclear power plants operation (maintenance and repair of structures, equipment, NPP personnel servic-ing, waste water treatment, metal and wood processing).
All production and consumption waste is emplaced at specially equipped sites, in spe-cial storages, and its disposal is controlled by ecological services of nuclear power plants.
DISTRIBUTION OF WASTE GENERATED IN 2016 BY HAZARD CLASSES
WASTE MANAGEMENT IN 2016
Class 1
Class 2
Class 3
Class 4
Class 5
Availability at year start
Produced
Used
Availability at year end
Decontaminated
Buried at own facilities
Availability at year end
Rosenergoatom / Annual report / 2016 25 years of safe operation
150 Environmental Costs
The environmental costs incurred by NPPs include expenses for protection and rational use of water resources (including payments to other enterprises for acceptance and treatment of waste waters), atmospheric air, environmental protection against the adverse impact of production and con-sumption waste (including payments under contracts on transfer of waste to specialized organizations).
A fi ne in the amount of 60.0 thousand rubles was imposed on the Leningrad NPP in 2016 for violation of the environmental regulations.
Applicable legislation provides for a fee for the adverse environmental impact as a form of partial compensation for the damage caused to the environment by a natural re-source user.
Nuclear power plants are obliged to pay for the following types of adverse impact on the environment:
• Atmospheric emissions of pollutants;
• Discharge of pollutants into waters;
• Production and consumption waste em-placement.
THE ENVIRONMENTAL COSTS INCURRED BY NPPS TOTALED 3,447 MLN RUBLES IN 2016.(3,406 MLN RUBLES IN 2015), INCLUDING:
Item Current (Operating) Environmental
Costs
Payments forEnvironmental
Services
Protection of atmospheric air and prevention of climate change 183 14
Collection and treatment of waste waters 579 181
Waste handling 231 198
Protection and rehabilitation of lands, surface and ground waters 209 33
Protection of environment against noise, vibration, and other types of physical impact
0 8
Preservation of biodiversity and protection of natural areas 2 19
Ensuring environmental radiation safety 1,184 392
Research activities aimed at reducing adverse human-induced impact on environment
1 0
Other areas of environmental protection activities 169 44
FEE FOR ADVERSE IMPACT ON ENVIRONMENT, THOUSAND RUBLES
Item Actually Paid Per Year
2014 2015 2016
Fee for allowable and excessive emission (discharge) of pollutants(emplacement of production and consumption waste)
15,705 13,755 10,315
Funds (charges) and fi nes recovered in compensation for damage caused by breach of environmental legislation
140 0 60
2016
2
015
2
014
3,141
3,406
3,447
ENVIRONMENTAL COSTS,MLN RUBLES
151 Environmental Risks Management
The most effi cient scientifi c approach allowing for quantitative assessment of the impact made by various human-induced factors on the environment and human health is a risk analysis methodology.
In the recent years, the Nuclear Safety Institute under the Russian Academy of Sciences (NSI RAS) completed a series of scientifi c projects that allowed to perform comparative analysis of radiation risks imposed by Russian NPPs operation and chemical risks related to coal-fi red com-bined heat and power plants, other indus-trial facilities and human-induced factors for the health of the Russian population. This kind of research in evaluation of radi-ation and chemical risks for human health in local communities situated close to NPP locations were carried out in the Sverdlovsk and Voronezh Oblasts where the Belo-yarsk and Novovoronezh NPPs are located, accordingly, and where it was decided to construct new units. The outcomes were taken into account in preparation of the Concern’s environmental policy and the de-velopment of the Concern’s Environmental Management System (EMS).
A high level of NPPs safety has been achieved recently. NPP radiation impact on environment through its actual emissions and discharges of radioactive substances into atmospheric air and bodies of water is signifi cantly below allowable values and does not exceed the minimum signifi cant dose equal to 10 mSv per year. With such a volume of radionuclides emission to the environment, the radiation risk for the pop-ulation is guaranteed to be unconditionally acceptable (less than 10-6). It permits us to consider the actual level of emissions and discharges of NPPs as optimized.
Ecological Acceptability
The Concern developed program activities in key areas, including environmental, along with corporate standards which refl ect short-term goals and comply with the Con-cern’s strategic concept on EMS improve-ment.
The following documents were developed and enacted to harmonize the environmental activities of NPPs with the requirements of Russian laws and regulatory acts of various levels:
• Major Rules of Ensuring Environmental Protection at Nuclear Power Plants;
• Methodic Guidelines for Organization of Industrial Ecological Monitoring at Nuclear Power Plants;
• Guidelines for Organization of Work during Production and Consumption Waste Han-dling.
Environmental Audit and Environmental Management System (EMS) Certifi cation
With a view to achieve its goal and imple-ment the basic principles of the Environ-mental Principles, the Concern assumed the obligation to introduce and support best practices of environmental management according to international and national standards in the area of environmental man-agement.
The Concern ensures environmentally safe production of power and heat at NPPs, improves the EMS and certifi es it according to the requirements of the ISO 14 001:2004 international standard, and the GOST R ISO 14 001-2007 national standard, which is an effi cient way of confi rming the Concern’s commitment to ideas of environmental protection, as well as an opportunity to increase competitive ability and to improve interaction with stakeholders and general public.
Inspection audits of certifi ed EMS of the Concern’s Headquarters and operational NPPs were organized and carried out in 2016. Inspection audits were performed by highly qualifi ed experts holding national and international accreditation, who appraised a high level of work organization in the area of shaping and development of the Concern’s EMS, and each operational NPP. The environmental certifi cates validity was confi rmed.
Year 2017 was named as the Year of Ecology by the Russian Federation President Decree No. 7 dated January 5, 2016.
Rosenergoatom / Annual report / 2016 25 years of safe operation
152
„3.5. DEVELOPING AREAS OF PRESENCE. CHARITY
DEVELOPMENT OF SOCIAL CAPITAL AND AREAS OF PRESENCE FORMS AN INTEGRAL PART OF THE CONCERN’S STRATEGY IMPLEMENTATION. THE CONCERN’S SOCIAL POLICY IS IMPLEMENTED IN FULL COMPLIANCE WITH THE UNIFIED INDUSTRYLEVEL SOCIAL POLICY OF ROSATOM STATE CORPORATION.
The social policy is implemented for the purpose of increasing the Concern’s attractiveness in the labor market, attraction and retention of young
“Top management of Rosatom State Corporation and the nation’s leaders set super-am-bitious goals for the Concern, and our employees are the main resource in their achieve-ment. Despite the harsh economic environment, the Concern remains a socially responsible employer. In order to be a step ahead of the rapidly changing economic conditions, it is necessary to use all available resources in an optimal way, to motivate employees for more productive labor, eliminate losses and shorten process times. The greater the difference between the prime cost and the selling price, the more funds we have for social support and sci-tech development.”
Andrey Petrov, CEO, Rosenergoatom Concern JSC
CONCERN’S SOCIAL EXPENSES IN 20132016, THOUSAND RUBLES
2013 2014 2015 2016
Costs per employee 758 70.8 71.56 78.0
Total costs of social policy implementation 2,750,786 2,653,527 2,660,145 2,771,778
Including key programs:
• Health programs (VHI, accident insurance) 309,718 326,477 321,435 358,408
• NGO 1,126,185 218,707 196,650 120,975
• Health resort treatment 219,069 299,488 260,780 342,496
• Support of retirees 219,069 343,898 289,469 332,162
• Assistance in housing acquisition 148,962 184,252 260,150 264,302.78
• Organization of culture and sports events 309,529 522,541 588,302 562,662
1. Basic provisions of the social policy and trade union relations are disclosed in the Concern’s 2013 Annual Report (pages 203-206).
and highly-professional experts, enhancing the employees’ engagement and effi ciency of social expenses1.
102-41, including footnote
153 SOCIAL EXPENDITURES STRUCTURE IN 2016, THOUSAND RUBLES
VHI
In accordance with current legislation, the Concern employees are entitled to medi-cal services at the respective health care institutions. In addition to local Compulsory Health Insurance (CHI) programs and state guarantee programs, the Concern provides to its employees Voluntary Health Insurance (VHI), and insurance against accidents and diseases.
Employees can insure their family members at their own expense using the corporate discount. Under the VHI program, employ-ees and their family members can receive special information, consulting, and medical assistance both at health care institutions of their region and at the institutions located in Moscow and Saint Petersburg.
Personnel Rehabilitation
Each year, the Concern conducts activities for personnel rehabilitation in departmental clinics and Russian health resort institu-tions. Thus, 11,147 persons received health rehabilitation and treatment in 2016 at 10 clinics of nuclear power plants under various medical programs. Another 5,238 employees enjoyed health rehabilitation treatment at 42 health centers on the Black Sea, the Mineral Waters area of the Caucasus, and midland Russia.
Culture and Sports Activities
Among the most important culture and sports events held in 2016 are:
• The 9th Summer Spartakiada Games among Rosenergoatom Concern JSC em-ployees—NPP Sport 2016 (Novovoronezh NPP);
• The Inter-Regional Guard of Memory 2016 with the participation of a joint team of the Concern’s Scouting Teams Association (Leningrad NPP);
• The Ready for Labor and Defense na-tion-wide sports festival among the Con-cern’s employees (Kalinin NPP);
• The 11th Open Tournament for Sports Tour-ism for the Concern’s prizes (Rostov NPP);
• The Light of My Russia festival of patriotic programs among creative teams of NPPs (Kursk NPP).
Housing Construction
In 2016, housing construction and assistance to employees in obtaining permanent housing was carried out in accordance with the Con-cern housing program approved in 2012. The Concern helps its employees with purchasing permanent housing and, depending on their needs, employees can request interest-free loans to pay their mortgage downpayment, and / or partial reimbursement of interest on the mortgage loan.
Residential houses in Novovoronezh (60 apartments) and Sosnovy Bor (104 apart-ments) were commissioned in 2016. In 2016, 381 employees of the Concern received inter-est-free loans to pay their mortgage down-
Health programs (VHI + accident insurance)
Health resort treatment
Retirees support
Improving housing conditions
NGO
Cultural and sports events
18%
17%
17%13%
6%
29%
Rosenergoatom / Annual report / 2016 25 years of safe operation
154 payment, over 2,700 persons get reimburse-ment of interest on the mortgage loan.
Pursuant to the comprehensive program on provision of the Concern’s employees with housing, over 625,000 m2 of housing is planned to be built until 2020, which is about 10,500 apartments. Construction of housing is one of the most important conditions in attracting qualifi ed personnel. It is especially important given the scale of construction of new power units.
Youth Policy
Among the events held in 2016 for the youth are:
• Meeting of authorized representatives of youth organizations of nuclear power plants and representatives of the Inter-regional Public Organization of Concern’s Veteran Employees (Moscow);
• 12th tournament of intellectual games (What? When? Where?, and Brain Ring) among young employees of the power engineering division of Rosatom State Cor-poration (Kalinin NPP);
• Delegation of the Concern’s young employ-ees participated in the Boost 2016 innova-tive forum for the youth (Kaluga Oblast);
• 14th International Youth KVN Festival among nuclear industry teams—Autumn Maximum 2016 (Balakovo NPP);
• Prizewinning team of the Autumn Maximum KVN festival participated in the corporate KVN fi nal of Rosatom State Corporation (Moscow).
• 9th military and patriotic convention Homeland among the teenagers from the cities where nuclear power plants are locat-ed (Smolensk NPP);
Private Pension Insurance
The Concern provides for private pension insurance of employees through indus-try-based Atomgarant Non-Government Pension Fund under the executed pension agreements.
Pension obligations are covered from the general resources of the Concern with the assessed value of 121 mln rubles in 2016 (196.7 mln rubles in 2015). The obligations are covered in their entirety according to the pension benefi t arrangement. The obligations with respect to the pension plan for 2016 were evaluated as of December 31, 2015 and obtained on the basis of the actuarial ex-pectation with due regard to the number of employees who participate in the Concern’s pension plan and an average contribution per pension plan participant employee.
Upon retirement of an employee of the Concern, the degree of participation in the pension plan is determined on the basis of the length of service in the nuclear power industry—at least 15 years at the time of achieving the retirement age according to pension legislation of the Russian Federation.
The expenses on private pension arrange-ment in 2016 totaled 121 mln rubles (196.7 mln rubles in 2015). The total number of the Concern’s retirees receiving non-government pension in Atomgarant Non-Government Pension Fund is 15,780 persons (14,785 per-sons in 2015). The average non-government pension amounted to 2,478 rubles (2,376 rubles in 2015).
The pension funds paid by NGPF Atomga-rant as non-government pensions to retirees during 2016 total 312.2 mln rubles (299.1 mln rubles in 2015). 6,824 employees participated in the Concern’s program on co-fi nancing of the pension (6,252 persons in 2015).
Veterans’ Movement
Taking care of its veteran employees is an important thrust of the social policy. The main objective for the veterans’ movement is to maintain the achieved level of cooper-ation with veterans, getting them involved in activities of their choice, allowing them to share their experiences with younger special-ists, providing skilled medical assistance, and helping them with daily chores.
In 2016, the actual number of retired employ-ees in the Inter-Regional Public Organization of Concern´s Veteran Employees (IPOCVE) totaled 17,424 persons (16,232 persons in
155 INFORMATION ON SHARE OF SALARY CONTRIBUTED BY EMPLOYEE / EMPLOYER
Participant Age Ratio of Pension Contributions(% of Employee’s Monthly Salary)
Employee Employer
18-29 0.8 1.6
30-35 1 2
36-39 1.3 2.6
40-44 1.5 3
45-49 1.7 3.4
50+ 2 4
2015), including: 1,172 participants of the emergency response campaign at the Cher-nobyl NPP and PO Mayak (1,109 participants in 2015), 461 Great Patriotic War, wartime homefront veterans and concentration camp prisoners (549 in 2015), and 8,682 veteran employees of the nuclear power industry (7,894 in 2015).
From the funds allocated by the Concern under charity contracts, IPOCVE provided 69.7 mln rubles as fi nancial aid to retirees in
diffi cult situations (74.6 mln rubles in 2015); 65.9 mln rubles for health resorts and medi-cal rehabilitation of retirees (52.6 mln rubles in 2015).
Organization of health improving rest and cultural activities totaled 9.8 mln rubles (14 mln rubles in 2015). Veterans received nursing services and presents on holidays and anni-versaries. Counting all expense items, fi nan-cial aid was provided to retirees in 48,186 cases (54,351 cases in 2015).
10,345
1,748
3,579
1,752
128,071147,200
65,866
Distinguished pensioner
Honored pensioner
Concern’s pensioner
Pensioner without status
Financial aid
Health resort treatment
Corporate events
IPOCVE MEMBERS BY CATEGORY STRUCTURE OF EXPENDITURES FORRETIREES SUPPORT
Industry-level programs
Traditional events under the charity policy
Charitable activities in NPP locations (including aid to retirees, persons in need, institutions for children, sports infrastructure, etc.)
396.4 MLN
RUB
LES
MLN
RUB
LES
MLN
RUB
LES
565.0 498.02015 20162014
120.5132
139
106.8
315
118
273.2
169.1
85.8
Rosenergoatom / Annual report / 2016 25 years of safe operation
156 CHARITY
157
„505.5MLN RUBLES
ARE ALLOCATED FOR CHARITY IN 2017
Charity is one of the best corporate tradi-tions that had been observed by the Con-cern since its incorporation. Co-funding is one of the principles laying the basis for relations between the Concern and charity recipients. The Concern partners up with other businesses and organizations in virtually every project. In addition, the Concern’s charity projects have input from individuals, including employees of nuclear plants and the Headquarters.
Traditional areas for charity and sponsor-ship include: assistance to socially dis-advantaged citizens—orphaned children or persons in dire straights, the disabled, Chernobyl disaster liquidators, war and
homefront veterans, large families, etc.; restoring and renovating places related to Saint Sergius of Radonezh and Seraphim of Sarov; church building in the towns of NPP presence; support and promotion of sports and a healthy lifestyle, and patriotism; events aimed to improve social and sport infrastructure in communities around NPPs, landscaping; support for cultural projects that promote moral values and responsi-bility.
CASE STUDY. CELEBRATING SELFVICTORY
The 1st International Open Swimming Tournament among children with lesions of the musculoskeletal system was held in Volgodonsk in June 2016 for the Rostov NPP prizes. The event was organized by the Voskhozhdeniye Specialized Boarding School. 32 sets of medals were awarded to children at the age of 13-17. It was a real sports festival and celebration of self-victory for children.
“The Rostov nuclear power plant has been helping our children for many years now. Assistance included funding of rehabilitation projects, procurement of equipment for treat-ment of our children, creation of a hippother-apy center where our children pass horseback riding therapy. Nuclear experts momentarily respond to any request. They give seasons’ greetings to the kids. THis tournament or-ganized and held by us together with them is another vivid example of our cooperation”.
Tatyana Belousova, Director of Voskhozhdeni-ye Specialized Boarding School
32sets of medalswere awarded
Rosenergoatom / Annual report / 2016 25 years of safe operation
158
„Additional tax payments in the regions of NPPs location in 2016 exceeded 7.2 bln rubles (11.7 bln rubles in 2015). Out of this amount, 1.68 bln rubles were channeled for municipal entities’ events (1.26 bln rubles in 2015).
Investments in infrastructure form an impor-tant aspect of the Concern’s social policy. The Concern’s investment programs typically include construction of social facilities. Key infrastructure components in the hometowns of nuclear plants were built simultaneously with construction of NPPs.
According to the investment programs for construction of new power units at the Ros-tov, Leningrad, Beloyarsk and Novovoronezh NPPs, funds were allocated to build a by-pass motorway, an infi rmary, a solid waste landfi ll and reprocessing site in Volgodonsk; con-struct a protected water supply source and relocate a regional motorway in Sosnovy Bor; a kindergarten for 140 kids in Novovoronezh is nearly completed (commissioning is sched-uled for the second quarter of 2017).
In 2016, in order to discharge its Nuclear Billion obligations1, Rosenergoatom Concern transferred the remaining portion of funds amounting to 400 mln rubles to the Zarech-ny urban district budget for the construction of an aqueduct and a municipal culture, edu-cation and sports complex.
The objective of raising the level of socioeco-nomic and infrastructure development in the areas of presence is also met through imple-mentation of the cooperation agreements made between Rosatom State Corporation and the Russian Federation constituents, and effective for four years now.
“It is diffi cult to overestimate the contribution made by the Concern into the regions of nuclear plants presence. For us, it is very important that there are such organizations in the Sverdlovsk Oblast. We have common understand-ing of further development of our relations. This is the outcome of good consistent work during several years.”
Deputy Governor—Minister of Finance, Sverdlovsk OblastGalina Kulachenko
7.9bln rubles exceeded additional tax payments in the regions of NPPs location in 2016.
>100sportsmen from the nuclear power industry participated in the 9th Spartakiada Games
1.68bln rubles were channeledfor municipal entities’events.
DEVELOPING AREAS OF PRESENCE
CASE STUDY
The municipal Start Stadium recently built in Novovoronezh became the venue of the Spartakiada Games. This versatile sports complex enabled us to arrange high-level competitions in such sports as swimming, track and fi eld, futsal, table tennis, etc.
Over 400 employees of nine Russian NPPs and Headquarters participated in the 9th Summer Spartakiada Games of Rosenergoatom Concern JSC—Sport-NPP 2016. The Novovoronezh NPP hosted the competitions in 2016. Medals were awarded in eight sports, both team and individual.
1. Activity program funded through the investment program and im-plemented as part of the Beloyarsk NPP power unit No. 4 construc-tion.
THE FOLLOWING MEASURES WERE TAKEN ACCORDING TO THE AGREEMENTS:
Novovoronezh town, Voronezh Oblast (Novo-voronezh NPP)
Balakovo municipal district, Saratov Oblast (Balakovo NPP)
Volgodonsk town, Rostov Oblast (Rostov NPP)
Polyarnye Zori town (Kola NPP)
Zarechny urban dis-trict, Sverdlovsk Oblast (Beloyarsk NPP)
250 mln rubles
100 mln rubles204.3 mln rubles
110 mln rubles 200 mln rubles
Overhaul of the motorway from the Saratov Shosse to the railroad bridge in the direction of the NPP.
10 environment friend-ly low-fl oor natural gas vehicles (5 buses and 5 trolleybuses) and 17 spe-cialized municipal vehicles acquired.
Reconstruction of the highway interchange, repair of municipal educational, cultural and sports institu-tions, culture and recreation centers in the settlements of Afrikanda and Zasheek, measures for creation of accessible environment for disabled persons at cultural institutions.
Street pavement overhaul, repair of Rovesnik recrea-tion center, youth athletic center, veterans museum, municipal boiler houses, elevators, gasifi cation of the Kurmanka village.
Repairs in the kindergar-tens and the municipal park, modernization of the municipal sports and recreation center, urban wastewater treatment fa-cilities, power supply grids in the Northern residential district, commencement of the Ice Arena construction.
Sosnovy Bor town, Leningrad Oblast(Leningrad NPP)
Kurchatov town, Kursk Oblast (Kursk NPP)
Roslavl district, Smo-lensk Oblast (Smo-lensk NPP)
Desnogorsk town, Smolensk Oblast (Smolensk NPP)
60 mln rubles 177.5 mln rubles
122.5 mln rubles56 mln rubles
Agreement with the Lenin-grad Oblast signed on July 26, 2016. Preparations for a volleyball center and a rehearsal hall construction in the Baltika Children’s Art School of Sosnovy Bor started as part of the agreement.
Repair of public-access roads and construction of crossroads, overhaul of general education insti-tutions, accomplishment of the community centers construction with a library and a cinema hall, subsidy of 23 mln rubles granted for ensuring balanced social expenses of the local budget.
Ongoing construction of a kindergarten for 150 kids and a sports center with a versatile playroom, current repair of school buildings, outdoor playgrounds re-equipped, aqueduct reconstructed in the 34th residential district.
Overhaul of the Des-nogorsk Power Engineering College building, recon-struction of the Alenka Kindergarten building façade, repair of the local motorway and yards, sub-sidy of 20.08 mln rubles for ensuring balanced social expenses of the local budget.
159
MANAGEMENT EFFICIENCY
4.1. Corporate Governance __________________________________________________________________ 161
4.2. Internal Control and Auditing ________________________________________________________179
4.3. Property Management __________________________________________________________________183
4.4. Purchase Management ________________________________________________________________ 184
4.5. Quality Assurance _______________________________________________________________________ 186
4.6. Interaction with Stakeholders ______________________________________________________ 191
4.7. Public Reporting System _______________________________________________________________195
161 4.1. CORPORATEGOVERNANCE
THE CONCERN’S CORPORATE GOVERNANCE SYSTEM IS BUILT ACCORDING TO THE REQUIREMENTS OF THE RUSSIAN LAWS, AND AIMED AT ENSURING THE MANAGEMENT EFFICIENCY, COMPLIANCE WITH INFORMATION TRANSPARENCY AND GENERAL AVAILABILITY PRINCIPLES, STOCKHOLDER RIGHTS EXECUTION, EFFICIENT INTERACTION WITH OTHER STAKEHOLDERS.
The Concern sticks to the best practices of corporate governance of Rosatom State Corporation and core principles of corporate governance recommended by the Corporate Governance Code1.
Ambitious goals set for the Russian nuclear power industry enterprises require that the Concern consistently increases the corporate management quality.
The reputation of an open company com-mitted to high standards in corporate man-agement and ethics can not be built up in one day. The Concern has been pursuing this
goal during 25 years of its history. We are proud today that much has been achieved in corporate management, but we move beyond.
Among the key internal documents governing corporate management in the Concern and ensuring stockholder rights observation are:
• Concern’s Articles of Association;
• Regulation on Concern’s General Meeting of Stockholders;
• Regulation on Concern’s Board of Directors.
1. Approved by the Board of Directors of the Bank of Russia on March 21, 2014.
Rosenergoatom / Annual report / 2016 25 years of safe operation
162 STRATEGIC PRINCIPLES, GOALS, AND CORPORATE GOVERNANCE AREAS
Corporate governance goals
Corporate governance principles
Corporate Governance Policy directions
• Improving the image of the Concern and its activities through timely and quality disclosure of information
• Creating an effi cient system for preserving the stockholders’ funds and their effective use
• Voluntary information disclosure through the website of Interfax Corpo-rate Information Disclosure Center, the Concern’s News Feed and corporate website
• Enhancing the corporate governance system with the best Russian and in-ternational practices in the areas of corporate gov-ernance, business ethics, disclosure and transparen-cy rules
• Equal and fair attitude to all stockholders exercising their right to participate in corporate governance
• Recognizing stakeholders’ statutory rights
• With a view to increase the corporate governance effectiveness, introducing a procedure for the Board of Directors resolutions imple-mentation control (con-sideration by the Board of Directors twice a year of the report on approved resolutions implementa-tion)
163 GOVERNING BODIES STRUCTURE
GOVERNING BODIES STRUCTURE
The Concern’s governing bodies are struc-tured according to the governance principles that apply in the parent company—Rosatom State Corporation and predetermine the Concern’s functioning as the operator of the State Corporation’s power engineering division.
When shaping the governing bodies struc-ture, we strive to take account of the requirements and recommendations of the State Corporation and follow the best prac-tices in this sector.
General Meeting of Stockholders
Board of Directors of ROSENERGOATOM CONCERN
Board of Directors SecretaryChief Exetutive Offi cer
Coordination Council Directorate
Supreme Management Body
Collegiate Management Body
Concern’s Corporate SecretarySole Management Body
Collegiate Advisory Body Collegiate Advisory Body
Rosenergoatom / Annual report / 2016 25 years of safe operation
164 GENERAL MEETING OF STOCKHOLDERS
The General Meeting of Stockholders is the supreme governing body. In its activity the General Meeting of Stockholders is guided by Russian Federation laws, the Articles of Association, and the Regulation on Concern’s General Meeting of Stockholders1.
The decision to convene the General Meeting of Stockholders is taken by the Board of Direc-tors. The sole executive body—the Concern’s CEO—arranges the General Meeting, including its information and documentary support.
The General Meeting of Stockholders is the supreme governing body. In its activity the General Meeting of Stockholders is guided by the Russian Federation laws, the Articles of Association, and the Regulation on Concern’s General Meeting of Stockholders.
The decision to convene the General Meet-ing of Stockholders is taken by the Board of Directors. The sole executive body—the Con-cern’s CEO—arranges the General Meeting, including its information and documentary support.
Material Changes in Size, Structure, or Ownership in Reporting Period
Between January 1 and December 31, 2016 according to the decision made to increase the registered capital of the Concern, 23,530,142,900 common stocks with the nominal value of 1 ruble each were placed and paid up, including:
• On February 2, 2016-8,993,000,000 stocks of the Concern (for Atomenergo-prom JSC);
• On August 2, 2016-1,000,000,000 stocks of the Concern (for Rosatom State Corpo-ration);
• On September 27, 2016-13,537,142,900 stocks of the Concern (for Rosatom State Corporation).
The Concern’s General Meeting of Stock-holders made a resolution to increase the
1. Approved by the resolution of the General Meeting of Stockholders, Minutes No. 9 dated July 29, 2014.
Concern’s registered capital (Minutes No. 20 dated December 5, 2016) in order to raise funds allocated from the federal budget for implementation of the nuclear power indus-try development measures. The resolution on additional issue of stocks was approved by the Board of Directors (Minutes No. 285 dated December 7, 2016) and regis-tered with the Bank of Russia on December 29, 2016 under state registration number 1-01-55 417-Е-007D. The number of addi-tionally issued stocks is 250,000,000,000 with a nominal value of 1 ruble, totaling 250,000,000,000 rubles.
Exercising of Stockholders’Rights
The stockholders’ rights are set forth in the Concern’s Articles of Association. The Concern guarantees equal and fair attitude to all of its stockholders when exercising their rights.
In 2016, fi ve general meetings of stockhold-ers were held at the decision of the Board of Directors.
The meetings considered the following matters referred to the competence of the General Meeting of Stockholders by the Con-cern’s Articles of Association:
• February: Re-election of the Board of Directors;
• June: Annual General Meeting of Stock-holders (approval of the 2015 Annual Report, approval of the annual accounting statements, election of the Board of Direc-tors members);
• September: approval of the auditor;
• October: re-election of the Board of Direc-tors;
• November: approval of the Concern’s re-vised Articles of Association.
All resolutions were approved unanimously.
REPORT ON DIVIDENDS PAID
The Concern’s General Meeting of Stockholders dated June 27, 2016 (Minutes No. 16) approved the resolution to omit declaring and paying out dividends on the Concern’s common stock according to the results of 2015. The Concern routed all of its profi t to fi nancing of the investment program.
EQUITY CAPITAL (AS OF DECEMBER 31, 2016)
9.98%
90.02%
Atomenergoprom JSC
Rosatom State Corporation
165 BOARD OF DIRECTORS
The Board of Directors is a collegiate gov-erning body in charge of overall manage-ment of the Concern. It controls execution of the resolutions of the General Meeting of Stockholders and observance of the Concern stockholders’ rights and legitimate interests according to the requirements of the Russian Federation laws.
The activity of the Board of Directors is reg-ulated by applicable legislation of the Rus-sian Federation, standards of the Concern’s Articles of Association, and the Regulation on Board of Directors as amended and approved by the resolution of the General Meeting of Stockholders on November 30, 2016 (Minutes No. 19)1.
Goals and objectives of the Concern’s Board of Directors are defi ned in the Regulation on Board of Directors2.
Members of the Board of Directors are elected through a transparent procedure that permits stockholders to obtain infor-mation about candidates suffi cient to get an idea about their personal and profession-al qualities.
The Board of Directors composition is defined according to the Russian Feder-ation laws with due consideration of the
balance of knowledge, qualification and experience, including production, indus-try-specific, environmental and social competencies.
In the reporting period, two members of the Board of Directors were withdrawn, and two were elected for the fi rst time ever. The Board of Directors consisted of fi ve persons in total as of December 31, 2016.
Gender composition of the Board remained unchanged: 100 % of the members are men. Such a composition is reasoned by the Concern’s industry-specifi c features and does not evidence gender inequality.
The age of the Board of Directors members averages 56.
As of December 12, 2016, four out of fi ve members of the Board of Directors were non-executive directors. The Concern’s CEO—Member of the Board of Directors was an executive director.
The Concern’s internal documents neither set the minimum number of independent members on the Board of Directors, nor the independence criteria. Independent directors were not elected to the Board of Directors.
1. At present, a revised version of the Resolution on Board of Directors approved by the resolution of the general meeting of stockholders dated January 9, 2017 (Minutes No. 20) is in effect.
2. http://www.rosenergoatom.ru / resources / 0728e8804f-4b0980aa0daac8c4 699 268 / Pol-ogenie_sd. pdf
BOARDS OF DIRECTORS BY AGE (AS OF DECEMBER 31, 2016)
20%
20%
20%
40%
20%
20%
20%
40%
45-49
50-54
55-59
60-64
56is the average age of the Board of Directors members
CHANGES IN BOARD OF DIRECTORS COMPOSITION DURING 2016:
31.12.2015 19.02.2016 (resolution by the Concern’s extraordi-nary General Meeting of Stockholders)
27.06.2016 (resolution by the Concern’s Annual General Meeting of Stock-holders)
11.10.2016 (resolution by the Concern’s extraordi-nary General Meeting of Stockholders)
Alexander Lokshin—Chair-man of the Board of DirectorsSergey AdamchikKirill Komarov*Yevgeny Romanov*Boris Silin
Alexander Lokshin—Chair-man of the Board of DirectorsSergey AdamchikKirill KomarovAndrey Petrov**Boris Silin
Alexander Lokshin—Chair-man of the Board of DirectorsSergey AdamchikKirill KomarovAndrey PetrovBoris Silin
Alexander Lokshin—Chair-man of the Board of DirectorsSergey AdamchikOleg Barabanov**Andrey PetrovBoris Silin
* Board of Directors memberswithdrawn in 2016
** Board of Directors memberselected in 2016
Rosenergoatom / Annual report / 2016 25 years of safe operation
166 Members of the Board of Directors do not participate in the Concern’s registered capital, do not hold the Concern’s common stock, and have not entered into transactions on acquisition or alienation of the Concern’s stock.
Performance of the Board of Directors was not evaluated in 2016.
The Board of Directors has no committees.
Board of Directors Chairman
The Chairman of the Concern’s Board of Directors organizes the activity of the Board and performs other functions stipulated by the Regulation on Board of Directors.
The Concern’s Board members elect the Concern’s Board of Directors Chairman from among themselves by a majority of votes. The Concern’s CEO can not be the Board of Directors Chairman. Alexander Lokshin was Chairman of the Board of Directors in the reporting period.
Report on Activities of Boardof Directors
In 2016, as a part of its current activity, the Board of Directors determined the main pa-rameters of business in the approved budget,
planned indicators of fi nancial and economic activity, and target performance indicators of the Concern’s activity for 2016, main refer-ence points for activity in the long-term, and approved key performance indicators.
The Board of Directors held 55 meetings and reviewed 70 issues in 2016.
The Board of Directors attendance was equal to 100 %.
In 2016, the Board of Directors activity was focused on achieving the Concern’s strategic goals. The most important decisions made in the reporting year are as follows:
• Approved: a report on the results of the 6th additional stock issue (121,605,976,400 stocks placed for 121,605,976,400 rubles) and a resolu-tion on the 7th additional stock issue for 250,000,000,000 rubles;
• In order to control the transactions with real estate, 20 meetings of the Board of Directors were held for their approval;
• As part of the process for Restructuring Non-Core Assets and Equity and reduction of managerial (administrative), fi nancial resources for upkeep of the asset com-plex, it is resolved to hand over immovable
18 General procedures matters
7 Consideration of the Board of Directors
activities
5 Consideration of the CEO activities
3 Approval of the investment program and
budget
20 Approval of transactions related to
allienation / transfer of immovable property
rights
17 Participation in organizations, incorporation
and liquidation of branches, approval of
provision regarding branches
26%
10%
7%
4%
29%
24%
MATTERS CONSIDERED AT BOARD OF DIRECTORS MEETINGS
167 and movable property to Energoatomin-vest LLC for further transfer to subsidiary companies located in NPP areas in order to ensure transportation services and food supply;
• A transaction was approved for acquisition of additional stocks in Atomenergoremont JSC for the amount of 821,005,931 rubles (payment in movable and immovable prop-erty);
• A transaction was approved for acquisition of additional stocks in Baltic NPP JSC for the amount of 718,700,000 rubles;
• A transaction was approved for acquisition of additional stocks in Atomtrans JSC for the amount of 29,552,910 rubles;
• A transaction was approved for acquisition of additional stocks in Rusatom Service JSC for the amount of 576,515,730 rubles; (payment in stocks of the Concern’s sub-sidiary ATER JSC);
• A transaction was approved to with-draw from Potapovsky JSC (Concern’s stake—100 %, non-core equity) by sell-ing the whole stake to an independent organization—Agrostroyservis LLC for 620,000,000 rubles;
• As part of the efforts to increase effi ciency of the Russian Federation NPPs operator for the purpose of boosting personnel labor productivity, decisions were taken to abandon activities of the following branch-es and representative offi ces:
• Russian Representative Offi ce in Lianyun-gang, People’s Republic of China;
• Science-Research Center for Emergency Response at NPPs;
• Directorate of Kursk NPP-2 under Con-struction.
• As a part of the preparation for the Con-cern’s annual general meeting of stock-holders, the Board of Directors tentatively approved the annual report and annual fi nancial statements of 2015 and gave recommendations on distribution of profi ts and payment of dividends.
CEO
According to the Articles of Association, tasks and functions of the Concern’s oper-ations management are performed by the Chief Executive Offi cer—a sole executive management body of the Concern.
Andrey Petrov, Member of the Board of Directors was the Concern’s CEO during the reporting period.
Board of Directors Secretary
Tasks and functions of the Concern’s Cor-porate Secretary are performed by the Secretary of the Board of Directors. The Secretary’s activities are governed by the Regulation on Concern’s Board of Directors. The Concern’s Board of Directors Secretary is a corporate offi cer subordinate to the Con-cern’s CEO and Board of Directors Chairman.
Svetlana Roganova was the Board of Direc-tors Secretary in 2016.
Rosenergoatom / Annual report / 2016 25 years of safe operation
168 CONCERN’S BOARD OF DIRECTORSAND CEO(as of December 31, 2016)
ALEXANDER MARKOVICH LOKSHIN
• Chairman of the Board of Directors, Rosenergoatom Concern JSC (since 2008)
• First Deputy CEO for Operations Management, Rosatom State Nuclear Energy Corporation
• Non-executive director
• Born in 1957.
• Graduated from M. I. Kalinin Leningrad Polytechnic Institute.
• 2010-2011-Deputy CEO, Director of the Directorate for Nuclear Energy Complex, Rosatom State Nuclear Energy Corporation.
• 2011-2012-First Deputy CEO, Director of the Directorate for Nuclear Energy Complex, Rosatom State Nuclear Energy Corporation.
• From 2012 to date—First Deputy CEO for Operations Management, Rosatom State Nuclear Energy Corporation.
• Awarded with the honorary title of Honored Power Engineer of the Russian Federation.
• Stake owned in the registered capital of Rosenergoatom Concern JSC: none.
• Common stocks owned in Rosenergoatom Concern JSC: none.
ANDREY YUVENALYEVICH PETROV
• Member of the Board of Directors, Rosenergoatom Concern JSC (since 2016)
• CEO, Rosenergoatom Concern JSC
• Executive director
• Born in 1963.
• Graduated from Ivanovo Power Engineering Institute majoring in Thermal Power Plants. PhD in Engineering.
• Andrey Petrov possesses 30-year experience in the industry: he started his career at Khmelnitsky NPP under the USSR Nuclear Energy Ministry as grade 5 inspection engineer of the turbine workshop.
• 2006-2015-Deputy CEO, Director of Smolensk Nuclear Power Plant (Branch of Rosenergoatom Concern JSC).
• Since September 7, 2015-CEO, Rosenergoatom Concern JSC.
• Andrey Petrol was decorated with Order Medal for Merits to Homeland, II degree (2003), Academician I. V. Kurchatov award pin, II degree (2007), Rosatom State Corporation badge of Merit for Nuclear Power Industry, I degree (2013). Andrey Petrov Awarded with the honorary title of the Honored Power Engineer of the Russian Federation (2009) according to the Presidential Decree.
• Stake owned in the registered capital of Rosenergoatom Concern JSC: none.
• Common stocks owned in Rosenergoatom Concern JSC: none.
169
BORIS GEORGIEVICH SILIN
• Member of the Board of Directors, Rosenergoatom Concern JSC (since 2010)
• Advisor to First Deputy CEO for Operations Management, Rosatom State Nuclear Energy Corporation
• Non-executive director
• Born in 1954.
• Graduated from Moscow Institute of Chemical Machine Building.
• 2004–2008 – Head of Department, Deputy Head of Directorate for Nuclear Power Industry and Nuclear Fuel Cycle of the Federal Agency for Nuclear Energy (Rosatom).
• From May 2008 to January 2010 – Head of Department, Deputy Director of the Department for Nuclear Power Complex, Rosatom State Nuclear Energy Corporation.
• Since February 2010 – Advisor, Nuclear Energy Complex Directorate, Rosatom State Nuclear Energy Corporation.
• Stake owned in the registered capital of Rosenergoatom Concern JSC: none.
• Common stocks owned in Rosenergoatom Concern JSC: none.
SERGEY ANATOLYEVICH ADAMCHIK
• Member of the Board of Directors, Rosenergoatom Concern JSC (since 2010)
• Inspector General, Rosatom State Nuclear Energy Corporation
• Non-executive director
• Born in 1954.
• Graduated from Tomsk Polytechnic Institute.
• Since July 2010-Inspector General, Rosatom State Nuclear Energy Corporation.
• Stake owned in the registered capital of Rosenergoatom Concern JSC: none.
• Common stocks owned in Rosenergoatom Concern JSC: none.
OLEG STANISLAVOVICH BARABANOV
• Member of the Board of Directors, Rosenergoatom Concern JSC (since 2016)
• Director for Development and Restructuring, Rosatom State Nuclear Energy Corporation
• Non-executive director
• Born in 1971.
• Education: higher technical, higher economic, PhD in Economics.
• In 1996, he graduated from Moscow State Geological Prospecting Academy named after Sergo Ordzhonikidze, majoring in Engineering and Technologies for Natural Resources Prospecting, mining engineer, in 2002-Enterprise Economics and Management, economist manager.
• 2011-2014-Director of Treasury, Rosatom State Corporation.
• From 2014 to date—Director for Development and Restructuring, Rosatom State Nuclear Energy Corporation.
• Stake owned in the registered capital of Rosenergoatom Concern JSC: none.
• Common stocks owned in Rosenergoatom Concern JSC: none.
Rosenergoatom / Annual report / 2016 25 years of safe operation
170 DIRECTORATE
The Directorate is the Concern’s advisory collegiate body headed by the CEO. The Directorate activities are governed by the Russian Federation laws, the Concern’s Ar-ticles of Association, the Concern’s organ-izational and administrative documents as related to the Directorate activities, and the Regulation on Directorate.
The Directorate operates under an ap-proved quarterly plan.
The Directorate competence includes con-sideration of the issues related to perfor-mance of target benchmarks of safe and effi cient power production at the existing NPP power units, physical protection and anti-terrorist stability of NPPs, economic safety, supervisory control of NPP safety, occupational safety management system, strategic development, personnel related and social issues, as well as consideration
of the issues related to summarizing of the Concern’s activities in the reporting period, and defi ning the goals and objectives for the planning period.
There were no considerable changes in the Directorate composition during the report-ing period. Over 70 % of the members are the same as in the previous year.
In terms of gender composition, the Direc-torate mostly consists of men: there are only two women out of 28 members. This is due to the Concern’s industry-specifi c features and not related to gender discrim-ination.
The Directorate members age averages 57. All members of the Directorate possess considerable experience in the nuclear pow-er industry, enabling effi cient management of the Concern and its branches.
DIRECTORATE COMPOSITION BY AGE(AS OF DECEMBER 31, 2016)
DIRECTORATE COMPOSITION BY GENDER(AS OF DECEMBER 31, 2016)
1111
1
3
7
8
5
1111
1
3
7
8
5
2
26
2
26
31-35
41-45
46-50
51-55
56-60
61-65
66-70
71-75
85-90
Men
Women
171 CONCERN’S DIRECTORATE(as of December 31, 2016)
ANDREY YUVENALYEVICH PETROV
CEO
ALEXANDER VIKTOROVICH SHUTIKOV
First Deputy CEO for NPPs Operation
ALEXEY GENNADYEVICH ZHUKOV
First Deputy CEO—Director of Capital Projects Implementation Branch Offi ce
JUMBERI LEONTOVICH TKEBUCHAVA
First Deputy CEO for Corporate Functions
BORIS NIKOLAYEVICHARSEEV*
Deputy CEO—Director for Business Development
STANISLAV IVANOVICH ANTIPOV
Deputy CEO—Director for RPS Projects and Effi ciency
ALLA IGOREVNA ARKHANGELSKAYA
Deputy CEO—Director for Strategy, Tariffs and Investments
BESLAN ANDREYEVICH BARGANJIYA
Deputy CEO—Director for Legal, Corporate and Property Affairs
* Until November 8, 2016.
Rosenergoatom / Annual report / 2016 25 years of safe operation
172
PAVEL LEONIDOVICH IPATOV
Deputy CEO—Director for Special Projects and Initiatives
PAVEL ALEXEEVICH LUBENSKY
Deputy CEO—Director of Smolensk NPP Branch
SERGEY ALEXANDROVICH MIGALIN
Deputy CEO—Director for Economics and Finance
VASILY VASILYEVICH OMELCHUK
Deputy CEO—Director of Kola NPP Branch
NIKOLAY NIKOLAYEVICH PONOMAREVSTEPNOY
Science Advisor to CEO
VALERY NIKOLAYEVICH BESSONOV
Deputy CEO—Director of Balakovo NPP Branch
ANDREY ALEXANDROVICH DEMENTYEV*
Deputy CEO—Director for Production and Operation of NPPs
VIKTOR IGOREVICHIGNATOV
Deputy CEO—Director of Kalinin NPP Branch
* Since September 1, 2016.
173
VLADIMIR IVANOVICH PEREGUDA
Deputy CEO—Director of Leningrad NPP Branch
VLADIMIR PETROVICH POVAROV
Deputy CEO—Director of Novovoronezh NPP Branch
ANDREY ALEXANDROVICH SALNIKOV
Deputy CEO—Director of Rostov NPP Branch
NIKOLAY NIKOLAYEVICH SAFRONOV
Deputy CEO—Director for Security
VLADIMIR ALEXEYEVICH SERVETNIK
Deputy CEO—Director for Purchases and Logistics
IVAN IVANOVICHSIDOROV
Deputy CEO—Director of Beloyarsk NPP Branch
NIKOLAY MIKHAYLOVICH SOROKIN
Deputy CEO—Inspector General
VYACHESLAV ALEXANDROVICH FEDYUKIN
Deputy CEO—Director of Kursk NPP Branch
Rosenergoatom / Annual report / 2016 25 years of safe operation
174
ALEXANDER ALEXEYEVICH KHVALKO
Deputy CEO—Sales Director
KONSTANTIN GENNADYEVICH KHOLOPOV
Deputy CEO—Director of Bilibino NPP Branch
ALEXEY VITALYEVICH SHALIMOV
Chief Accountant
SVETLANA VASILYEVNA DUBROVINA
Head of CEO Administration (Directorate Secretary)
* Including Svetlana Dubrovina, Di-rectorate Secretary—Head of CEO Administration, Rosenergoatom Concern JSC.
1
14
1
4 22
STRUCTURE OF CONCERN’S MANAGERIAL BODIES, BY GENDER AND AGE
STRUCTURE OF BOARD OF DIRECTORS,BY GENDER AND AGE
Men from 31 to 50 years old (inclusive)
Men over 51 years old
Men from 31 to 50 years old (inclusive)
Women from 31 to 50 years old (inclusive) *
Men over 51 years old
Women over 51 years old
175
Coordination Council is the Concern’s adviso-ry collegiate body headed by CEO.
Key Objectives of Concern’s Coordination Council:
• Development of Strategy of the Concern and organizations included in its manage-ment circuit;
• Preparation of the mid-term development program for the Concern and organizations;
• Elaboration of the implementation mecha-nisms for strategic initiatives;
• Arrangement of effi cient management of the Concern’s perspective and current activities;
COORDINATION COUNCIL
• Consideration of key issues related to reorganization of the Concern and organi-zations.
The Coordination Council activities are gov-erned by the Russian Federation laws, the Con-cern’s Articles of Association, the Concern’s organizational and administrative documents, and the Regulation on Coordination Council. The quantitative and personal composition of the Concern’s Coordination Council, including its secretary, and changes in the composition are approved by the CEO’s orders.
INFORMATION ABOUT MAJOR TRANSACTIONS AND INTERESTED PARTY TRANSACTIONS
No major transactions or interested party transactions subject to approval by the Con-
According to the Concern’s Articles of Association and Regulation on Board of Di-rectors, remuneration and (or) compensa-tion may be paid for the expenses related to discharge of the Board members’ ob-ligations. The General Meeting of Stock-holders is authorized to make decisions on such payments.
No remuneration was paid to members of the Board of Directors in 2016.
Remuneration of the CEO is defi ned by the labor contract and consists of a constant
CRITERIA FOR DETERMINING REMUNERATION OF CEO, DIRECTORATE, AND BOARD OF DIRECTORS MEMBERS
part and a variable part. The variable part of remuneration depends on achieved key per-formance indicators (KPI). Key performance indicators, covering economic, environmental and social aspects, are established for the Concern as a whole and included in the indi-cator matrix of the CEO. The Concern’s KPIs are decomposed and translated to executives of all levels. Payment of the variable part is made after approval of the amount of remu-neration by the Board of Directors.
cern’s management bodies were conducted in 2016.
Rosenergoatom / Annual report / 2016 25 years of safe operation
176 CEO KPI ACHIEVEMENT IN 2016
Item KPI Units of Meas-urement
Plan for 2016 Actual KPI Achievement Level in 2016
Bottom Level Target Value Top Level
1 AFCF of Rosatom StateCorporation
bln rubles The indicator is set for Rosatom State Corporation
2 AFCF of Power Engineering Division
bln rubles 91.0 100.6 121.0 113.7
3 Forecast unit cost of NPPconstruction
rubles / kW 107,876 105,303 102,730 105,963
4 Specifi c semi-fi xed costs rubles / MW 1,847.6 1,743.0 1,220.5 1,670
5 Completion of Rosenergo atom Concern JSC investment program
% 95 100 110 98.6
6 Power generation at NPPs bln kWh 195.22 196.72 199.00 196.37
7 Labor productivity mln ru-bles / pers.
6.66 6.88 7.84 7.04
8 Integral performance on new products
% 95 100 125 112.6
9 Revenues from new products sale outside the circuit and inside the circuit on a competitive basis
bln rubles 49.305 51.900 64.875 56.09
10 New product orders portfolio of the State Corporation for 10 years
bln rubles 177.175 186.500 233.125 218.48
11 LTIFR % - 0.15 - 0
12 No events above INES Level 2 units - no events - fulfi lled
13 Fulfi llment of state objectives % - 100 - 90
The fi nal KPI performance ratio equaled 95.46 % in 2016 (111.76 % in 2015). Basic KPIs outran the target values. The main reduction of 10 % is related to nonfulfi llment of the State Targets Achievement KPI with regard to the milestone of the Novovoronezh NPP-2 power unit No. 1 commissioning due to faults of equipment manufactured by Power Machines PJSC (commissioned on February 27, 2017).
539.2 mln rubles is the total remuneration paid in 2016 to key manage-ment personnel: executives (CEO and his Deputies) and other offi cers vested with authority and responsibility for planning, directing, and controlling activities of the company.
For additional information on the KPI sys-tem refer to Section 3.1-HR Policy.
102-36
177 ETHICAL PRACTICE
The Concern approved the Ethics Code1 defi ning the ethical principles of the compa-ny’s activities and setting forth the employee conduct requirements.
The Ethics Code provisions are applicable to all employees irrespective of their position level and period of work in the company. The Con-cern’s Ethics Code hinges on uniform values for all enterprises of the nuclear power industry.
The Ethics Code covers the following areas:
• Preventing corruption and confl icts of interest (including joint work of relatives, presents giving and receiving, business entertainment);
• Safety culture, occupational health;
• Environmental protection;
• Property and resource preservation;
• Information integrity;
• Information transparency, feedback and dialog;
• Interaction with stakeholders.
In order to implement ethical practices, the Concern created the Ethics Panel and appointed the Ethics Offi cer. The Ethics Panel is a collegiate body responsible for settling the issues of ethical misconduct. The Ethics Offi cer is responsible for taking preventive measures, ethics review and employees consulting.
Violations of ethical standards may be reported by email: [email protected] (applicants are guaranteed confi dential-ity, anonymous reports are considered, but the Ethics Panel reserves the right to omit replies to anonymous reports). In case an ethical dilemma is not settled on the level of the Ethics Panel, the employee is entitled to apply to the hotline of the Concern or Rosatom State Corporation.
1. More details about the Concern’s Ethics Code are available at:http://www.rosenergoatom.ru / part-ners / Ethical_ practice
CORRUPTION PREVENTION
The Concern approved and enacted the Unifi ed Industry-Level Anti-Corruption Pol-icy of Rosatom State Corporation and Its Organizations, the Regulation on Anti-Cor-ruption Activities in Power Engineering Division. Anti-corruption standards and procedures are defi ned.
At present, the Concern is taking actions according to the approved and enacted Anti-Corruption Plan for 2016-2017 in order to ensure the Concern’s participation in 2016 in implementing the provisions of the National Anti-Corruption Plan for 2016-2017 approved by the Russian Federation Presi-dent Decree dated April 01, 2016 No. 147.
The Concern was included in the Unifi ed Register of Anti-Corruption Charter Mem-bers (register entry number 412).
With a view to implement the action plan for organization of training and legal education of the Concern’s employees in the matters of preventing and countering corruption, the Concern’s Employees Training Program for Corruption Prevention was approved and enacted. The Program allowed over 2,000 em-ployees to pass training and briefi ngs in 2016.
In order to evaluate possible corruption risks (CR), the Concern published a CR evaluation document. According to the document, CR Maps and the Register of Local Regulations and Other Documents issued for CR elimination and (or) minimi-zation were compiled in 2016. 27 (out of 36) business processes and 75 (out of 250) sub-processes being the most probable cause of corruption risks and acts were defi ned. Most of the identifi ed CRs were
Rosenergoatom / Annual report / 2016 25 years of safe operation
178 eliminated or minimized by owners of the business processes. Two areas with the highest CR probability were discovered—procurement and contracting. The analysis results are taken into consideration when developing other local anti-corruption reg-ulations of the Concern, including those for avoidance of any personal interest that may lead to confl icts of interest.
The Corruption Prevention section on the Concern’s website was created. The section
On January 2017, the Concern approved a new revision of its Articles of Association brought into compliance with industry-lev-el requirements. Considerable changes in the Articles of Association were related to re-distribution of competencies of the general meeting of stockholders in favor of the Concern’s Board of Directors. This will signifi cantly improve the quality of decisions taken.
The new revision of the Articles of Asso-ciation stipulates considerable changes in the procedure and necessity of approval of interested party transactions, The Federal Law on Joint Stock Companies provides for the applicability of general rules for interest-ed party transactions. Therefore, the Con-cern formalized in its Articles of Association a special type of interested party transac-tions involving members of the Board of Directors, CEO, persons authorized to make
CORPORATE GOVERNANCE PLANSFOR 2017
transactions on behalf of the Concern, their relatives, and legal entities having corporate relations with them.
For the purpose of effi cient organiza-tion of the interested party transactions approval process, the following efforts are taken:
• Collection, processing and alignment of the information about persons that may be deemed interested in transactions, e. g. the persons authorized to make transac-tions on behalf of the Company;
• Analysis of all transactions in order to identify the interested party transactions;
• Development of guidelines for the Con-cern and companies within its control cir-cuit in order to standardize the approach-es to special transactions.
provides information on anti-corruption regulations, list of corruptive and other vi-olations, as well as feedback channels that may be used to report corruption. Feed-back channels allow to directly contact the Asset Protection Department of Rosatom State Corporation via Hotline, email or paper mail. Meanwhile, the applicants are guaranteed independent consideration of any message, and non-disclosure of the message source. Anonymous messages are also considered.
179 4.2. INTERNAL CONTROLAND AUDITING
INTERNAL CONTROL AND AUDITING IN ROSENERGOATOM CONCERN JSC ARE INTEGRATED INTO THE MANAGEMENT SYSTEM AND TARGETED AT MINIMIZING OPERATIONAL RISKS AND ENHANCING REASONABLE ATTAINABILITY OF STRATEGIC GOALS.
Streamlining of the internal control sys-tem of Rosenergoatom Concern JSC is an essential task in the environment of the nuclear power industry development.
The Concern’s internal control system is built according to the Internal Control Pol-icy of Rosatom State Corporation and Its Organizations (hereinafter—Industry-Level Policy) aimed at raising the guarantees of strategic targets achievement and corporate
governance effi ciency, and with due regard of the requirements of the general guide-lines for the operating company’s quality.
In 2016, the target status of the inter-nal control system was included into the Concern’s Goal Tree and specifi ed as the Absence of Incidents and Considerable Remarks as Result of Third-Party Inspec-tions. Timeliness and Completeness of Troubleshooting.
FINANCIAL PERFORMANCE CONTROL
The Concern approved regulatory docu-ments and guidelines on fi nancial state-ments internal control system (FS ICS) as part of the common internal control system. The main purpose of the FS ICS is to provide reasonable assurance of the reliability of
fi nancial statements for external and internal users. The Concern’s FS ICS Improvement Plan comprising measures aimed at enhanc-ing the quality of accounting and ensuring the reliability of fi nancial statements is pre-pared each year.
INTERNAL AUDITING SYSTEM COMPONENTS
• Corporate culture and its shaping processes
• Personnel management processes and their results
• Corporate structure and delimination of powers
• Processes of target defi nition and target systems (target settings)
• Risk management activity
• Internal auditing activity
• Monitoring activity (independent reviews)
• Information systems and communications
• Changes management activity
• Compliance
Rosenergoatom / Annual report / 2016 25 years of safe operation
180
1
5
9
2
6
10
3
7
4
8
11
Each management body and structural unit plays its own role in internal auditing with due account of the general structural hierarchy
INTERNAL AUDITING SYSTEM PRINCIPLES
General involvement Availability
Focusing Delimitation of responsibility
Development balance
Anticipatory organization Risk orientation
Legitimacy Hierarchy
Completeness
Suffi ciency
Each employee of the Concern is responsible for internal auditing
The system is available for stakeholders to exert a controlling effect
Conditions are created for focusing of the efforts of all participants of the auditing activity on development of the elements that ensure effi cient achievement of targets
Auditing functions are distributed among the auditors in such a way that auditing targetsare effi ciently achieved
The auditing development activity takes into account the risks of unbalancing of its integralparts, and ensures timely response
Auditing systems in variable processesand structures shall be provided withresources, organized, rebuilt, and adaptedin advance
The Concern’s internal auditing system development processes are based on the results of identifi cation, forecasting and assessment of risks inherent to the Concern and its organizations
The internal auditing system operation and development are based on the provisions of Russian and international laws
The Concern’s internal auditing system is complete, comprehensive, and harmonized. It embraces all aspects of the Concern’s activities, and takes into account all particulars of its sub-systems
The scale and scope of auditing functions corresponds to the discovered risks and threats, which ensures sustainable and safe development, and effi cient achievement of targets
181 SUFFICIENCY
Shaped according to the Industry-Level Poli-cy, the Concern’s Specialized Internal Control Body performs its activities as a structural unit headed by Chief Supervisor.
The Specialized Internal Control Body met the requirements for independence in the reporting period.
Planning of supervisory measures for 2016 and 2017 was risk oriented on the basis of risk readiness, risk evaluation by Rosatom State Corporation, the concern’s top man-agement and own (independent) assessment.
Supervisory measures scheduled for 2016 were fully implemented.
Key subjects of the supervisory measures are as follows:
• Effi ciency of Rosenergoatom Concern JSC Investment Program execution;
• Supervision (compliance) of the competi-tive policy implementation, including pur-chasing, contracting activities, organizing bids for the sale of property;
• Evaluation of effi ciency of subsidiary com-panies’ asset portfolio management;
• Issues related to prime cost composition.
Development of the supervision environ-ment in 2016 was focused on absolute elimination of identifi ed issues. The Con-cern transferred to continuous monitor-ing of elimination of issues identifi ed by inspections / internal audits and risk miti-gation / minimization measures with weekly reporting of the results to the Concern’s management bodies.
Raising the procurement effi ciency is one of the Concern’s strategic goals. Therefore, constant control in this area is reasonably required. According to the principles of the industry-level Internal Control Policy, Rosenergoatom Concern JSC is implement-ing the mechanism for interested party control of purchasing activities. Potential suppliers, participants of the procurement procedures are provided with the possibility to refer to a corporate body (Arbitration Committee) in order to eliminate violations of the Unifi ed Industry-Level Purchasing
16supervisory measureswere held In 2016.
184corrective actions were devel-oped and performed according to the checkup results.
INTERNAL CONTROL DEPARTMENT OF ROSENERGOATOM CONCERN JSC
Director for Internal Control and Audit—Chief Supervisor
Deputy ChiefSupervisor
Senior Auditors—internal supervisors of Rosenergoatom Concern JSC branches—operating NPPs,Internal Control Department of organizations within Rosenergoatom Concern JSC management circuit (Atomenergoremont JSC)
Control andAnalysis Group
InternalAuditDirectorate
Directorate Head
Internal Business Processes Audit Group
Financialand Operational Performance Inspection Group
Internal Business Processes Audit Group
Contractual Work Control Group
Directorate Head
Controland Revision Directorate
Chairman of the Arbitration Committee—Head of CompetitivePolicy Control Division
Rosenergoatom / Annual report / 2016 25 years of safe operation
182 Standard (Purchasing Regulation). The number of reasonable complaints fi led with the Arbitration Committee reduced in the reporting period due to the increased quali-ty of purchasing procedures.
A similar internal control mechanism was introduced in 2016 for the bidding proce-dures for the sale of dormant materials and equipment, ferrous and non-ferrous scrap metal.
The main areas of internal control and au-diting in the medium and long term are as follows:
• Development of the supervision procedures preventing overheads.
• Strengthening of the supervision environ-ment, in the form of closing the gap between identifi cation of violations as part of the supervisory activities and decision making (corrective actions), inter alia, and raising the responsibility for failure to make decisions on correcting the identifi ed violations.
• Implementation of an IT system for support of supervisory activities and internal super-visory procedures integrated into automat-ed processes.
EXTERNAL AUDIT
Transparency and reliability of the organiza-tion’s fi nancial statements defi ne long-term prospects for the business development and lay the basis for its investment attrac-tiveness. External auditing allows reducing risks for stockholders, on the one hand, and broadening the range of potential investors, on the other.
Therefore, in compliance with legal require-ments, the Concern is annually subject to external auditing—assessment of accounting statements by an external auditor according to international or national standards.
Financial and Accounting Advisors Limited Liability Company (FAA LLC) was selected for accomplishment of mandatory auditing of
the annual accounting (fi nancial) statements in 2016.
Selection of the external auditor was per-formed on the level of Rosatom State Corporation as part of general centraliza-tion of accounting and taxation processes, budget planning, internal control of fi nancial reporting, and risk management. The external auditor selection procedure was carried out according to the provisions of the Unifi ed Industrial Standard (Procurement Regulation) of Rosatom State Corporation. FAA LLC audi-tors studied the annual fi nancial statements prepared for 2016 according to the Russian Accounting Standards by several enterprises of Rosatom State Corporation, including the Concern.
NUMBER OF COMPLAINTS WITH ARBITRATION COMMITTEE
SHARE OF SUBSTANTIATED COMPLAINTS IN TOTAL NUMBER OF PURCHASES
20
1520
16
374
345
20
1520
16
0.61
0.50
183
4004.3. PROPERTY MANAGEMENT
As of December 31, 2016, the Concern de-facto was using 779 land plots with the total area of 20,775 ha, among them:
• 400 land plots with the total area of 6,243 ha fully owned by the Concern;
• 379 plots with the total area of 14,532 ha are leased by the Concern, including 27 plots under short-term lease.
768 land plots passed cadastral registra-tion, 6 land plots are currently subject to survey work with subsequent registration with cadaster. Ownership and tenancy rights were registered for 778 land plots.
As of December 31, 2016, the Concern held title to 7,416 items of immovable property, including 6,942 items for which the Concern had registered its property rights.
In 2016, a project was implemented for Placement of Personnel from Branches and Subsidiaries Located in Moscow and Moscow Oblast in Common Offi ce Space (1,895 persons placed on the premises with the area of 22,945 m2).
The situation in the office property mar-ket of Moscow allowed to find attractive offers by landlords. This reduced direct rental costs of administrative and office rooms for placement of the Headquar-ters, branches and subsidiaries in Moscow by some 19 % (versus the level of 2015 without account of the consumer price index).
In order to bring non-core property as-sets, real estate and equity outside the industry circuit, 1,389 mln rubles were
received according to the results of the said assets restructuring through sale in 2016, including 769.1 mln rubles from sale of real estate.
In line with the requirements of the Fed-eral Law No. 226-FZ dated July 3, 2016 on the Russian Federation National Guard Troops as refers to housing provided to personnel of the National Guard units involved in protection of important na-tional facilities (nuclear power plants) and special cargo, 225 housing units (apart-ments) were donated to the Russian Federation Treasury.
LAND PLOTS WITH THE TOTAL AREA OF 6,243 HA FULLY OWNED BY THE CONCERN
Rosenergoatom / Annual report / 2016 25 years of safe operation
184 4.4. PURCHASE MANAGEMENT
Purchasing activities of the Concern within Rosatom State Corporation are governed and executed according to the following federal- and industry-level regulatory docu-ments:
• Federal Law No. 223-FZ dated July 18, 2011 on Purchasing of Products, Work, and Services by Specifi c Corporate Entities;
• Unifi ed Industry-Level Purchasing Stand-ard (Purchasing Regulation) of Rosatom State Corporation1 (hereinafter—Standard, UILPS);
• Unifi ed industry-level procedure for plan-ning, preparation to procurement process-es, reporting at its expense for the needs of Rosatom and the State Corporation’s organizations, including typical forms of technical specifi cations2;
• Other federal- and industry-level statu-tory acts, regulations of Rosatom State Corporation and the Concern as related to procurement and adjacent areas.
The Concern’s purchasing activity regu-lates the relations arising from purchas-ing for the needs of the Concern and its organizations with a view to promote fair competition and fair market prices, en-
sure effi cient use of funds, transparency of order placement, and integrity of the economic space.
In order to achieve the strategic goal of Rosatom State Corporation—Reducing Prime Cost and Accelerating Processes, and to execute the updated Power Engi-neering Division Strategy until 2030 as part of the strategic initiative of Oper-ational Improvements for Reduction of Costs and Boosting of Output, the pur-chasing management actions are taken in the following areas:
• Reduction of processes duration as part of the industry-level Purchasing Activities Management function;
• Decrease in expenses for the function due to automation and standardization of processes;
• Ranging, unifi cation and standardization of purchases;
• Reduction of prime cost in core business areas.
According to the Standard, the Concern developed and enacted the regulatory documents that govern the purchasing
1. Approved by the resolution of Rosatom State Corporation Supervisory Council No. 37 dated February 7, 2012 as amended.
2. Rosatom State Corporation Order No. 1 / 284-P dated March 30, 2015, the Concern’s Order No. 9 / 304-P dated March 17, 2016, as amended, most recent amend-ment—the Concern’s Order No. 9 / 27-P dated January 12, 2017.
185
>4,5651. Pursuant to the Government Res-
olution No. 1352 dated December 11, 2017 on peculiarities of small and medium businesses participa-tion in purchases of goods, work, services by specifi c types of legal entities.
activities and the procedure of interaction among the Headquarters, branches and sub-sidiaries of the Concern.
Pursuant to the Federal Law No. 223-FZ dated July 18, 2011 and the Standard, information on goods, work, or services to be purchased is published in the unifi ed in-formation system: www.zakupki.gov.ru, and the offi cial website on purchasing in the nuclear sector: www.zakupki.rosatom.ru; thus a wide range of bidders may join the procedure, and a competitive environment is created.
The share of the contracting agents from the ‘local suppliers’ as a result of purchasing procedures totaled 33 % in 2016, where ‘local suppliers’ means suppliers of goods, work, and services located in the presence areas of the Concern and its branches (58.4 % in 2015, 18 % in 2014).
The share of contracts made by the Concern with small and medium businesses amount-ed to 44.57 %1 in 2016.
We are constantly streamlining the pur-chasing procedures in order to increase the effi ciency of procurement activities. Re-spective indicators of effi ciency are mon-itored by heads of the Procurement and
Logistics Support Service of the Concern’s Headquarters, as well as Procurement Directorates created in the Concern’s branches.
According to the results of 2016, category management coverage of the annual pur-chasing plan implemented by the Concern was as follows:
• Materials and equipment purchas-ing—82.99 % (with the target level of at least 80 %).
• Work / services purchasing—66.73 % (with the target level of at least 50 %).
Effi ciency of category management of purchasing activities exceeded 4.565 bln rubles (18.2 % of the previous purchases).
Concern’s Purchasing Objectives for 2017:
• Share of non-competitive purchases—5 %;
• Share of purchases from small and medium businesses—18 %;
• Streamlining of category management of the logistics support system, categorized procurement of materials, equipment, work, and services.
BLN RUBLESEXCEEDED EFFICIENCY OF CATEGORY MANAGEMENT OF PURCHASING ACTIVITIES
Rosenergoatom / Annual report / 2016 25 years of safe operation
186 4.5. QUALITY ASSURANCE
AT ALL LIFE CYCLE STAGES OF THE NUCLEAR INDUSTRY FACILITIES THE CONCERN DEFINES ITS QUALITY ASSURANCE POLICY ON THE BASIS OF THE MAIN GOALS OF ITS ACTIVITYCOSTEFFICIENT GENERATION AND RELIABLY SUPPLY OF ELECTRICITY AND HEAT TO CONSUMERS WHILE ASSURING THE SAFETY PRIORITY.
Quality Policy
Quality assurance is planned and con-sistent activity aimed at ensuring that all services and work related to creation, operation and decommissioning of NPPs are performed according to the established procedure, and their results meet the pre-set requirements.
The Concern’s integrated quality sys-tem is based on the ISO standards of 9000 series, federal standards and rules NP-090-11-Requirements for Quality Assurance Programs for Nuclear Facilities, the IAEA General Safety Rules GSR Part 2-Leadership and Management for Safety.
The Concern is implementing the Quality Policy Statement with its basic provision concerning cost-effective power genera-tion and reliable supply of electricity and heat to consumers, while maintaining un-conditional compliance with safety require-ments.
Quality Policy Implementation
All activities regarding the Concern’s quality system development scheduled for 2016 by administrative orders of the Con-cern were performed in full. The Concern achieved the quality targets set for 2016 by Rosatom State Corporation (as confi rmed by monitoring of the existing system of quality management in the civil segment of Rosenergoatom Concern JSC division) in the following areas: coordination of engineering documentation, manufacturing inspection, acceptance control, assembly and construction work inspection, commis-sioning control, maintenance and operation activities.
5NPPs successfully passed checkups of compliance with the requirements of NP-090–11, GOST ISO 9001-2011, GS-R-3 (GSR Part 2) In 2016.
187
Plans for 2016 Results of 2016 Plans for 2017
Development of the integrated quality system towards forming an Integrated Management System according to GS-R-3 requirements, implementing a unifi ed technical policy in the area of quality, updating of statutory base of the Concern’s quality system, including quality assurance of the products supplied to operating NPPs and NPPs under constructionInternal audits in structural units of the Head-quarters and branches of the Concern in the Moscow region regarding their compliance with GOST ISO 9001-2011, NP-090–11, and GS-R-3
Concern’s Integrated Management System (at the level of the Concern’s Headquarters and nuclear power plants) according to GS-R-3 requirements: Formulated, implemented, documented;Regulatory documents and operator’s standards to develop the quality system according to GOST ISO 9001-2015 requirements, to assure quality of products supplied to operating NPPs and NPPs under construction: developed, updated and enacted;Schedule and program of internal audits in structural units of the Headquarters and branches of the Con-cern in the Moscow region regarding their compliance with GOST ISO 9001-2011, NP-090–11, and GS-R-3: fulfi lled
Developing the integrated quality system towards forming an Integrated Management System according to IAEA requirements, imple-menting a unifi ed technical policy in the area of quality, updating the regulatory base of the Concern’s quality system, including quality as-surance of the products supplied to operating NPPs and NPPs under constructionImplementing internal audits in structural units of the Headquarters and branches of the Concern regarding their compliance with GOST ISO 9001-2015, NP-090–11, and IAEA General Safety Rules GSR Part 2, as part of integrated internal inspections.
Confi rmation of validity of the Concern’s conformance certifi cate in TÜV Thuringen e. V. certifi cation agency;Transfer to ISO 9001 standards as amended in 2015.
Second supervisory expert review approved the Concern’s quality system conformance with the requirements of ISO 9001:2008-Quality Manage-ment Systems. Requirements by TÜV Thuringen e. V. (Germany) certifi cate No. TIC 15 100 128 018 in the following area: Management of Design and Construction of Facilities of Peaceful Use of Nuclear Power, Electricity Production and Supply. The validity term of the conformance certifi cate: from May 23, 2015 to May 22, 2018.ISO 9000 series standards as amended in 2015 were enacted by the Concern’s order as mandatory requirements.
Full transfer to ISO 9001 series standards as amended in 2015. Concern’s quality system documentation alignment with newly enacted requirements of GOST R ISO 9001-2015.Recertifi cation of the Concern’s quality system conformance with the requirements of GOST R ISO 9001-2015 (ISO 9001:2015)—Quality Management Systems. Requirements in the following area: Electricity Production and Supply, Management of Design and Con-struction of Facilities of Nuclear Power Use
Analysis of performance of Divisions for Organization of Acceptance Testing and Eval-uation of Conformance (DOATEC) at NPPs in order to assess their operational effi ciency
As part of inspections of execution of common programs for ensuring NPP quality, performance of DOATEC at NPPs was analyzed, non-compliance was discovered, recommendations were given, meas-ures were developed for elimination of reasons for DOATEC non-compliance with the pre-set require-ments.Inspections were held at the Balakovo, Smolensk, Leningrad, Kalinin, Kola NPPs of their compliance with the requirements of NP-090–11, GOST ISO 9001-2011, GS-R-3 (GSR Part 2), organization of acceptance testing at the Concern’s NPPs.
Supervision of acceptance tests timing for equipment as part of the Unifi ed Indus-try-Level Procedure of Interaction during Acceptance of Equipment for NPPs.
Inspections of compliance with NP-090–11, GOST ISO 9001-2011, GS-R-3 at Balakovo, Smolensk, Leningrad, Kalinin, Kola NPPsInspections of compliance with NP-090–11, GOST ISO 9001-2011 at the organizations performing work and services, including: quality assurance programs for develop-ment and manufacturing of equipment by manufacturers of equipment important for NPP safety
Inspections were held at the Balakovo, Smolensk, Leningrad, Kalinin, Kola NPPs of their compliance with the requirements of NP-090–11, GOST ISO 9001-2011, GS-R-3 (GSR Part 2), organization of acceptance testing at the Concern’s NPPs.Quality assurance programs at equipment manufac-turing plants.
As part of inspection procedures unifi cation, integral comprehensive (targeted) inspections of safety and operation of the labor protec-tion system were held, as well as inspections of compliance with the requirements of NPPs Operation Quality Assurance Program, NPPs Construction Quality Assurance Program, GOST ISO 9001-2015 and IAEA GSR Part 2.Inspections of compliance with NP-090–11, GOST R ISO 9001-2015 at the organiza-tions performing work and services for the Concern.
Rosenergoatom / Annual report / 2016 25 years of safe operation
188
Plans for 2016 Results of 2016 Plans for 2017
Development of the Certifi cation System for Production Sites of Manufacturers of Equip-ment for the Concern’s NPPs
Four enterprises were certifi ed within the Production Certifi cation System at Enterprises Manufacturing Equipment for Concern’s NPPs: Atommashexport JSC, PF OKA LLC (fi ttings), Invertor Plant JSC, Pro-gress JSC (electrical equipment).
Certifi cation of 12 enterprises manufacturing equipment for the Concern’s NPPs.
Performance and scaling of results of RPS projects in the area of quality assurance of the products supplied to operating NPPs and NPPs under construction:shaping the requirements of the Concern as the NPP operator for nuclear fuel production;Development of preliminary national standards specifying the requirements for nomenclature groups of equipment (in order to enhance the status and enforceability of the Concern’s requirements for manufactured equipment)
RPS projects were implemented for ensuring safety of imported products supplied to operating NPPs and those under construction, in the form of the Appli-cability Decisions, streamlining of the quality control system for production of nuclear fuel supplied to the Concern’s NPPs.Requirements of the Concern as the NPP operator for nuclear fuel production were developed:RD EO 1.1.2.01.1097-2016-Regulation on Control of NPP Nuclear Fuel Production Quality;STO 1.1.1.2.013.1153-2016-Nuclear Fuel. Technical Requirements.Preliminary national standards were developed to set forth the requirements for equipment item groups:PNST 164-2016-Electrical Equipment for Nuclear Plants. General Technical Requirements;PNST 165-2016-Electric Power Plants with Internal Combustion Engines for Nuclear Plants. General Tech-nical Specifi cations. Placement;PNST 166-2016-Pipe Fittings of Class 4 Safety for Utility Systems of Power Plants. General Technical Requirements;PNST 167-2016-Cableware for Nuclear Plants. General Technical Requirements.
Developing national standards setting forth the requirements for assessment of compliance in the form of acceptance, testing, applicability decisions.
Maintenance of use of the analysis data from the supplied equipment quality data base
Monitoring of products quality for NPPs by means of continuous collection, processing, storage, and analysis of data with the use of software, hardware, and methodical complexes (equipment quality data base) allowing to make managerial decisions, set the requirements in local regulatory acts of the Concern and Rosatom State Corporation (industrial regulations, guidelines, etc.)
Maintenance of use of the analysis data from the supplied equipment quality data base
189 QUALITY MANAGEMENT OF EQUIPMENT SUPPLIED TO CONCERN’S NPPS
ROSENERGOATOM CONCERN JSC AS THE OPERATING COMPANY PARTICIPATES IN MANAGING THE QUALITY OF EQUIPMENT SUPPLIED TO NUCLEAR PLANTS.
Quality Management Functions Performed by Concern:
• Coordination of technical specifi cations, technical requirements for imported equip-ment, programs and methods of testing, working design documents for equipment (control of completeness of the require-ments contained in the said documents and their compliance with initial technical requirements, federal rules and standards for nuclear power use);
• Participation in acceptance, typical, qual-ifi cation, customer acceptance testing, coordination of technical requirements and changes in them according to the testing results (control of testing completeness, compliance of the applied methods, testing results with the requirements of the tech-nical specifi cations and technical require-ments);
• Acceptance of equipment according to quality plans (control of manufacturers’ compliance with the requirements of fed-eral standards and rules, working design documentation, process fl ow documen-tation for manufacturing of equipment in a stagewise manner, against quality plan milestones);
• Coordination, approval of decisions on applicability of imported equipment being signifi cant for the Concern’s NPPs safety;
• Approval of decisions on applicability of general purpose industrial articles as part of equipment being signifi cant for the Concern’s NPPs safety;
• Acceptance control of the equipment delivered to the Concern’s NPP sites (compliance of equipment with the NPP project requirements);
• Testing, acceptance and acceptance testing by the Concern (NPPs and HQ) with involvement of Authorized Repre-sentatives appointed by joint resolution of Rosatom State Corporation and Ros-tekhnadzor No. 06-4421 dated June 25, 2007.
The Concern considers, coordinates, con-trols execution and evaluates performance of the quality assurance programs of organ-izations involved in design and / or manufac-turing of NPP equipment.
Actions and powers of the Concern are governed by federal laws, standards and rules in the area of nuclear power use. In addition, the actions and powers of the Concern’s structural units, are governed by regulatory documents and standards that are binding due to their inclusion in general contractor agreements (standard agree-ment form).
The Concern implemented the System for Voluntary Certifi cation of Production by NPP Equipment Manufacturers for Com-pliance with Operator’s Requirements of Rosenergoatom Concern JSC1. The System operation is targeted at providing advan-tages in bidding procedures to fair (certifi ed with the System) manufacturers.
1. Registration number in the unifi ed register of voluntary cer-tifi cation systems No. РОСС RU. 31 086.04ZHICHO.
Rosenergoatom / Annual report / 2016 25 years of safe operation
190 MANUFACTURERS CERTIFICATION SYSTEM: GENERAL INFORMATION
Certifi cation objectsPreliminary national standard for General Technical Requirements…
• QMS• personnel• production infrastructure• industrial processes
• Documentation for products
Inspection monitoring(including the absence of violations in relation to the certifi ed manu-facturer’s products)
Manufacturer Certifi cation assessment criterion
— 5 % (in case there are two certifi ed manufacturers);— 7.5 % (in case there are three certifi ed manufacturers);— 10 % (in case of four and more certifi ed manufacturers).
Completion of the milestone for Checkup of Production Readiness for Manufacturing of the quality plan on the basis of the certifi cate issued in the System of Rosenergoatom Concern JSC——for equipment of safety classes 2-3
Supply of equipment of safety class 4 subject to acceptance according to the quality plan, only with the certifi cate of the System of Rosenergoatom Concern JSC (without quality index)
Bidding
3nomenclature groups (fi ttings of safety class 4, electrical equipment of safe-ty class 4, pumps of safety classes 2-4)
TOTAL NUMBER OF MANUFACTURERS THAT FILED APPLICATIONS IN 201616
7manufacturers of electrical equipment;
7manufacturers of fi ttings;
2manufacturers of pumps.
Production QMS audit Documentation analysis(expert review)
Directorate for relations with equipment manufacturers
Certifi cation authority (Quality SupervisionAgency JSC)
191 4.6. INTERACTION WITH STAKEHOLDERS
THE CONCERN STRIVES FOR ENSURING A HIGH LEVEL OF AVAILABILITY AND TRANSPARENCY OF ITS OPERATIONS BY IMPLEMENTING THE PRINCIPLE OF ACTIVE DIALOG WITH STAKEHOLDERS. WE SUPPORT ACTIVE COMMUNICATION WITH ALL STAKEHOLDERS, TIMELY PROVIDING SIGNIFICANT INFORMATION ON ALL ASPECTS OF OUR OPERATIONS AND RESPONDING TO REQUESTS AND SUGGESTIONS OF STAKEHOLDERS.
The approach to interaction with stakehold-ers is based on the principles of regular and constructive dialog, partnership, mutually benefi cial cooperation, trust and sincerity, public availability and transparency, fulfi ll-ment of assumed obligations.
The stakeholders ranking map is given in the Concern’s 2015 Annual Report (page 181).
Public Discussions
In strict compliance with legislation of the Russian Federation, when planning its activities that may have a considera-ble impact on the environment and local communities, the Concern initiates public discussions1. Among the participants are experts representing R&D organizations and designers, supervisory agencies, feder-al, regional, and local government agencies, NGOs, environmentalists, the press, and the broader public.
Overall, in 2016, 15 public discussions were held in the Concern’s areas of presence. More than 6,700 persons participated in them. The ‘case’ of each public discussion includes 100 or more activities involving communities, public authorities and mass media and involves explaining of planned activity, as well as its safety principles for humans and environment.
Training workshops were held, including a workshop for preparation and arrange-
ment of public hearings for top managers of the Jordanian nuclear power industry, and a workshop with the BONAMENS information analysis agency—Preparation and Arrangement of Public Hearings for representatives of all NPPs and the Capital Projects Implementation Branch Offi ce of the Concern.
AAP NP Fund
The Fund for Promotion of Development of Municipalities “Association of Areas of Presence of Nuclear Plants” (AAP NP Fund) was established in 2013. Its found-ers are Rosenergoatom Concern JSC and municipal entities where nuclear plants are located. At present, the Fund unites 13 municipal entities and territories of nuclear plants presence and 11 Russian NPPs.
Five meetings of the Fund Management Board were held in 2016. The Fund pays much attention to the development of international cooperation and partnership through “public diplomacy”.
In order to support the development of education, culture, and sports in the mu-nicipal entities, the APP NP Fund held the 4th annual open contest of social projects among NGOs in the areas of NPP presence under the sponsorship of the Concern. 52 projects won the contest and were suc-cessfully implemented in 2016 (36 projects in 2015).
1. Public discussions are a set of activities forming part of evalua-tion of environmental impact of prospective economic and other activity held with a view to inform the public about planned activities and its possible impact on the environment, to identify public preferences and consider them for impact assessment, and to protect the rights, liberty, and legitimate interests of citizens within areas targeted for specifi c business operations of signifi cance.
AWARDS OF THE IMPRESSION FROM DANUBE TO CHUKOTKA PROJECT (EXHIBITION OF PHOTO WORKS BY BALINT VINCZE):
• ConTEKst 2016 contest of PR projects—winner in the Social Projects nomination;
• Special diploma of the Medialogy information analysis system for the best newsworthy event of 2015;
• Diploma of the Silver Archer—Czech Republic international contest.
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Rosenergoatom / Annual report / 2016 25 years of safe operation
192 Liaison with Non-Governmental and Environmental Organizations Environmental Expert Review
The Concern is active in partnering with Non-Governmental Environmental Organi-zations that have a real possibility to obtain unbiased information about the state of ecological, radiation, and energy safety of NPPs. The Concern’s Stakeholders Commis-sion comprises representatives of various environmental organizations and move-ments, including Bellona Ecology and Law Center, Oka Inter-Regional Environmentalist Movement, Nongovernmental Ecological Fund named after V. I. Vernadsky, Green Cross Inter-Regional Public Environmental Organization.
An international public environmental expert review of the materials for substantiation of the Leningrad NPP-2 power units No. 1 and No. 2 operation licensing was held in 2016 for the fi rst time ever in the nuclear power industry history under the sponsorship of Rosenergoatom Concern and Rosatom State Corporation Public Council. Unprecedentedly, international experts from Finland, Hungary, Belarus, Kazakhstan and Armenia were invited to participate in the public environmental expert review. Independent assessment of all presented materials confi rmed nuclear, environmental, radiation and socioeconomic safety of the project. The experts noted that assessment of the impact on all components of the environment is comprehensive, and VVER-1200 reactor project fully meets safety requirements. The expert review results were presented on May 10, 2016 in Saint Peters-burg at the press conference in the Interfax information agency, and on May 31 in Mos-cow during the roundtable as part of the ATOMEXPO-2016 international forum.
Environmental safety reports are compiled on the annual basis for all 10 operational NPPs and published on the Concern’s website (publication of environmental reports of 2016 is scheduled for the second half of 2017), pass public presentations in all municipal entities and regional centers where NPPs are located.
Mass Media
The Concern’s interaction with mass media is guided by the policy of maximum transparen-cy and availability.
The information on operation of nuclear plants and radiation environment in the towns of NPP location is available on the Concern’s offi cial website (www.rosenergoatom.ru). Press releases and information communications are posted there without delays.
Real-time information about radiation mon-itoring of Russian NPPs may be found at: www.russianatom.ru.
Furthermore, all nuclear power plants have 24 / 7 automatic responding machines provid-ing information about current operation of NPPs and radiation environment on a daily basis.
The information support of the operation of nuclear power plants is coordinated by the Directorates of Information and Public Relations of each NPP. In case of emergen-cy situations in NPP operation, there is a mechanism in place ensuring quick notifi ca-tion involving press editions of towns and areas of NPPs presence, urban and regional television and radio channels, information agencies, press services of the governor and regional government, press services of regional departments of the Ministry of Emergency Situations and the Ministry of Internal Affairs.
Public Awareness Centers at nuclear plants have a chain of Clean Energy clubs as a meeting place for local reporters who regularly write on the issues of the nuclear sector. The clubs organize interviews, press conferences, and subject-oriented press tours. Over 13 visits of various delegations and 20 press tours to NPP sites (over 300 participants) were held in 2016. More than 1,200 press releases were published on the Concern’s website about the activities of the Concern and its branches—nuclear pow-er stations.
On August 24-26, the Kalinin NPP site hosted the Energetic People festival of regional and corporate press organized by the Concern. The festival was attended by over 85 persons (including 50 journalists and 35 PR experts from Rosatom companies) from 10 regions. The festival became the fi nal round of the large-scale contest of regional mass media. Winners of regional rounds participated in this fi nal federal round. The next festival is sched-uled for 2017.
CASE STUDYINDEPENDENT ENVIRONMENTAL MONITORING OF RAW AND SPF HANDLING
In 2016, the Oka Inter-Regional Environmentalist Movement held at the Novovoronezh and Leningrad NPPs, Leningrad Branch of RosRAO FSUE an independent environmental monitoring of RAW and SNF handling, as well as nuclear power units decommissioning. The monitoring program included 22 environmental actions and measures. Over 3,300 dosimeter measurements were taken in 1,100 locations held at NPPs, including SNF storage facilities, solid RAW processing complexes, RosRAO FSUE premises and in adjacent areas, were within the natural background values. All measurements were taken with maximum transparency
193 Special Projects
One of the most important areas of informational interaction is educational work among population and communities. Exhibitions located in Community Informa-tion Centers of NPPs receive from 3 to 5 thousand visitors each year.
A unique project for Atom Classes (addi-tional information about the project may be found in the Concern’s 2015 Annual Report, page 135) is one of them. New Atom Classes were opened in Udomlya and Bilibino in September 2016. Efforts were taken during the year to maintain operation of all Atom Classes in the areas of NPPs location.
Public Opinion Surveys
According to the results of social studies performed by Levada-Center, the balance between positive and negative evaluations of the nuclear industry development pro-grams among the Russian population av-
eraged 55.3 % in 2016 (the indicator varied from 49.2 to 62.1 % during the recent fi ve years). The share of supporters of nucle-ar power use in Russia totaled 71 % (the indicator varied from 66.5 to 75.5 % during the recent fi ve years). Thus, the result of 2016 corresponds to a general trend of the recent years and confi rms a persistently high level of support of the nuclear power industry development programs among the Russian population.
Preservation of the balance between posi-tive and negative evaluations is forecast at the level of 55-59 % in 2017.
Blogosphere
As in the previous years, the blogs of nu-clear plants (http://publicatom.ru / blogs / ) continued their operation in 2016 at the blog platform of Rosatom State Corpora-tion. The blogs are used to post answers to the questions asked by readers, as well as to publish current information about NPP operations.
ROSENERGOATOM CONCERN JSC IN SOCIAL NETWORKS:
• VKontakte:https://vk.com / rearu
• Facebook:https://www.facebook.com / rosenergoatom.ru /
• Instagram:https://www.instagram.com / rosenergoatom_ru /
• Youtube:https://www.youtube.com / channel / UCByFNgbhE6MzElrk30TgW1g
INTERACTION AS THIS ANNUAL REPORT WAS PREPARED
In view of the nature of the Concern’s ac-tivity, the following subjects were selected as the priority issues of the Report in 2016: 25 Years of Safe Operation of Russian Nuclear Power Industry and Sustainable Development Management. Key stakeholder representatives were involved in dialogs dis-cussing the overall concept, priority issues and the draft of the Annual Report, as well as participated in public affi rmation of the Report.
Dialog No. 1 with stakeholders took place in November 2016 in the form stakehold-ers questioning. The Dialog was devoted to Discussing Concept of 2017 Annual Report of Rosenergoatom Concern JSC. All partici-pants received the draft concept of the Concern’s Annual Report during the dialog. Representatives of stakeholders could express their comments and suggestions on the company’s report and activities.
Following the comments, the Annual Re-port concept was considerably amended. The amendments are shown in the table of stakeholders’ comments (Appendix 4).
Dialog No. 2 on discussion of priority subjects of the Annual Report was held on February 21, 2017 in the format of a visit-ing meeting at the Beloyarsk NPP. During the dialog, the participants visited the innovative power unit No. 4 with BN-800 reactor, and could ask questions regarding disclosure of information in the Annual Report about the Concern’s activity in 2016 and measures on safety assurance at Russian NPPs. The event was attended by representatives of various groups of stake-holders, government bodies, public and en-vironmental organizations, mass media, and members of the Sverdlovsk Oblast Public Chamber. Stakeholders expressed certain comments and suggestions regarding re-
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Rosenergoatom / Annual report / 2016 25 years of safe operation
194 fl ection of information on priority subject in the Report (Appendix 4).
Public consultations on the draft Annual Report were held on April 21, 2017 at the Concern’s Headquarters and involved a wide range of stakeholders, representatives of government bodies and local authorities, public and environmental organizations, mass media, etc. The stakeholders were familiarized with the draft Report, expressed their respec-tive suggestions, notes and comments.
Stakeholders Commission
The Stakeholders Commission was cre-ated at the Concern’s initiative in 2013. The Commission is working to streamline the public reporting system and ensure acceptance of the Concern’s activity by communities through involvement of the stakeholders in the dialog.
The Commission’s efforts are aimed at:
• Ensuring public acceptance of the nuclear power industry development in Russia;
• Providing collective recommendations for decision making in the area of sustaina-ble development of the Concern and the nuclear industry in general;
• Communicating with population and NGOs on the matters related to nuclear power use.
In 2016, the Commission members partic-ipated in discussing the urgent matters of the Concern development, including the stakeholders’ dialogs on discussing prioritized subjects of the 2015 Annual Report (February 2016-a visiting meeting (dialog) at the Novo-voronezh NPP), and public consultations on the draft 2015 Report (April 2016).
CASE STUDY
On February 21, 2017, during the dialog with stakeholders held at the Beloyarsk NPP, members of the Sverdlovsk Oblast Public Chamber suggested considering the possibility of federal-level assistance in cleaning of the heat sink from biogenic elements received with the Pyshma River waters. One of the signifi cant achievements of the Beloyarsk NPP was biological correction of the Beloyarsk Reservoir held in 2010-2013 (so called ‘algae treatment’), i. e. colonization of the water body by Chlorella single-cell
algae that is a natural antagonist of blue-green algae and prevents growth of the latter. As a result, water blooming in the summer period considerably decreased, bad smell disappeared, biomass of blue-green algae shrank signifi cantly. Moreover, the Reservoir was stocked with the so called meliorating fi shes (grass carp and silver carp), which additionally improved its condition. However, these measures will not ensure full cleaning of the Reservoir, if biogenic waste affl ux with wastewater from the Pyshma River head is not prevented. The solution may be found on the federal level.
20
152
017
2016 52 100 50
34 42 52
32 116 65
NUMBER OF PARTICIPANTS IN DIALOGS, PERS. (INCLUDING VIDEOCONFERENCE PARTICIPANTS)
Dialog 1
Dialog 2
Public consultations
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195 4.7. PUBLIC REPORTINGSYSTEM
The following regulatory documents were used in preparation of the Concern’s Annu-al Report:
• Federal Law dated December No. 208-FZ dated December 26, 1995 on Joint Stock Companies;
• Federal Law No. 402-FZ dated December 6, 2011 on Corporate Accounting;
• Regulation on Information Disclosure by Issuers of Securities (approved by Order of the Central Bank of the Russian Fed-eration No. 454-P dated December 30, 2014);
• Letter of the Central Bank of the Russian Federation No. 06-52 / 2463 dated April 10, 2014 on Recommendations for Apply-ing Corporate Governance Code;
• Sustainability Reporting Guidelines issued by the Global Reporting Initiative (GRI);
• АА1000 series of standards published by the International Institute of Social and Ethical Accountability;
• Integrated Reporting Standard of the In-ternational Integrated Reporting Council (IIRC);
• Key Performance Indicators. Recommen-dations of the Russian Union of Indus-trialists and Entrepreneurs (RSPP) on
their use within managerial practices and corporate non-fi nancial reports;
• Rosatom State Corporation’s Public Ac-countability Policy;
• Public Annual Reporting Standard of Rosenergoatom Concern JSC;
• Rosenergoatom Concern JSC Ethics Code.
The Concern’s report is prepared on the basis of the guidelines approved by admin-istrative orders of the Concern’s CEO:
• The Concern’s Standard of Public Annual Reporting (revised in 2015);
• Public Reporting Policy (approved by the Concern’s order in 2015 due to revision of the Public Reporting Policy of Rosatom State Corporation and Its Organizations);
• Procedure for Preparation of Concern’s Annual Report (revised in 2015);
• List of Standard Elements of Concern’s Public Annual Reporting;
• Regulations on Concern’s Stakeholders Commission.
Additional information about the Concern’s public reporting system may be found in the 2014 Annual Report (page 158).
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196
PUBLIC REPORTING AWARDS OF 2016
Russian Contests
Public reporting contest among Rosatom State Corporation organizations
Winner of the following nominations: the Best Public Annual Report of Rosatom State Corporation Division, and the Best Public Annual Report According to Stakeholders
Annual reports contest of RA EXPERT rating agency
Nominee in the Design and Printing (Non-Financial Sector) nomination
Annual reports contest of the Moscow Exchange
Short-listed in three nominations: Best Report of Non-Public Company, Best Design and Concept of Annual Report, and Best Report on Corporate and Social Responsibility, and Sustainability
Ad Black Sea 2016 international advertising festival
Short-listed in the Corporate Publications / Catalogs sections
Corporate transparency rating of major Rus-sian companies
2nd place in the overall rating
International Contests
MarCom Awards Three platinum awards in the following nominations: Corporate Annual Report, Corporate Social Re-sponsibility, Annual Report of Power Company
LACP 2015 Vision Awards Golden award in the Power Engineering—Equipment and Services nomination
LACP 2016 Impact Awards / CorporateReputation Competition
Two silver awards in the following nominations: Print Version of Report, and Electronic Report, TOP 50 Worldwide
LACP 2016 Spotlight Awards GlobalCommunications Competition
Three gold awards in the following nominations: Print Version of Report, and Electronic Report, TOP 100 Worldwide (positions 48 and 49)
PUBLIC REPORTING SYSTEM IMPROVEMENT AREAS IN 20162017
Action Results of 2016 Plans for 2017
Regulatory baseimprovement
Transfer to a new version of GRI Sustainability Reporting GuidelinesNew persons added to the Stakeholder CommissionReporting information collection and processing procedures unifi ed
Pursuing new trends in reporting, including new standards (if available)Rotation of the Stakeholder Commission membersAttraction of foreign stakeholders
Personneldevelopment
Participation in specialized workshops, publication of employ-ees’ articles in industry-specifi c mass media devoted to the reporting subject
Participation in workshops, studying of best practices
Research and surveys Opinion poll performed among stakeholders in the areas of presenceCollection and consideration of suggestions through the on-line version of the Report
Opinion polls among stakeholders in the areas of presenceCollection and consideration of suggestions through the online version of the Report
Promotion Dialog held at the Novovoronezh NPPAwards received at Russian and international contests of re-ports, the 1st place in the industry-level contest of Rosatom State CorporationPresentation of the Report in the regions.Publication in industry-specifi c mass media
Arrangement of a dialog at the Beloyarsk NPP (held on Febru-ary 21, 2017)Participation in Russian and international contests of reports.Promotion in social networks.Report presentationPublication in mass media
197 APPENDICES TO ANNUAL REPORT
Appendix 1. About Annual Report __________________________________________________________ 198
Appendix 2. Corporate and Contact Details __________________________________________ 202
Appendix 3. GRI Content Index ____________________________________________________________ 203
Appendix 4. Table on Consideration of Suggestions by Stakeholders _____ 216
Appendix 5. System of Public Reporting Indicators at Rosenergoatom Concern JSC ___________________________________________________________ 220
Appendix 6. Public Assurance Statement ______________________________________________225
Appendix 7. Non-Financial Audit Report _______________________________________________ 228
Appendix 8. Report of Internal Control Department of Rosenergoatom Concern JSC ___________________________________________________________232
Appendix 9. Accounting (Financial) Statements _____________________________________233
Appendix 10. Auditor’s Report Certifying Annual Accounting Statements ___________________________________________________________ 243
Appendix 11. Report on Concern’s Compliance with Corporate Governance Code Recommended by Bank of Russia _____________________________ 248
Appendix 12. Operating NPP Power Units (as of December 31, 2016) _____ 258
Appendix 13. Installed Capacity, Power Output and Capacity Factor of Nuclear Power Plants of Rosenergoatom Concern JSC in 2016 by Regions ______________________________________________________________________________ 259
Appendix 14. Main Personnel Characteristics ________________________________________ 260
Appendix 15. Glossary __________________________________________________________________________ 262
Appendix 16. Abbreviations __________________________________________________________________ 265
Appendix 17. Feedback Form _________________________________________________________________267
198
Rosenergoatom / Annual report / 2016 25 years of safe operation
APPENDIX 1. ABOUT ANNUAL REPORT
DESCRIPTION OF REPORT
Reporting cycle Annual
Report format Integrated, as eight previous ones
Prioritized report subjects
25 years of safe operation of NPPs Sustainability management
GRI disclosure level Comprehensive option under GRI Sustainability Reporting Guidelines
Date of previous report publication
June 2016
Report coverage Rosenergoatom Concern JSC, including branches – operating NPPs, and those under construction Information about subsidiaries is given in individual cases
Forms of reporting information assur-ance
Auditor’s report certifying annual fi nancial statements Non-fi nancial audit report Report of the Internal Control Department on auditing of the public report building process
THE CONCERN’S INTEGRATED REPORT COMBINES A TRADITIONAL ANNUAL REPORT OF A PUBLIC JOINT STOCK COMPANY AND A SUSTAINABILITY REPORT. THE REPORT IS SUBJECT TO APPROVAL BY THE GENERAL MEETING OF STOCKHOLDERS.
Report Building Process
During the annual report building process, the context of the Concern’s operations in 2016 was subject to analysis. Just as before, safety of NPPs operation remained one of the Concern’s focuses. Year of 2017 is the 25th anniversary of Rosenergoatom Con-cern incorporation date. Therefore, the sub-ject of 25 Years of Safe Operation of NPPs was traditionally selected as a prioritized subject of the Report. The Concern defi ned another prioritized subject as Sustainability Management taking into account the sug-gestions of stakeholders and the urgency of sustainable development on the global scale. In addition, we described the infl uence of this subject on various aspects of the Concern’s activity in the reporting year and in the medium term.
The principles of highlighting material as-pects and interacting with stakeholders were implemented to ensure that the selected priority subjects were relevant and signifi cant for preparation of the Report according to the Global Reporting Initiative Sustainability Reporting Guidelines. Stakeholder repre-sentatives were invited to discuss the report through dialogue, public consultations, and public affi rmation. Interaction with stakehold-ers was arranged as recommended by the Stakeholder Interaction Standard АА1000.
The Concern’s top executive management was involved in preparation of the Report through questionnaire surveying and selec-tion of material aspects of activity.
This Annual Report discloses key perfor-mance indicators of business operations for
102-32
199 the period between January 1 and December 31, 2016, and describes the Concern’s out-looks for growth, information on the strate-gic goals and activities aimed at laying the basis for long-term sustainability.
This Annual Report covers informa-tion on performance of the Concern and its branch companies (nuclear power plants). The Annual Report comprehensively discloses fi nancial, economic, and production-related information on the Concern’s key activities, as well as their economic, environmental, and social impact.
Level of Annual Report Compliance with GRI Guidelines: Comprehensive
Disclosure of information in the Annual Report: the Comprehensive option under the GRI Sustainability Reporting Guidelines is proven by an independent third-party au-dit. To conduct an independent third-party audit, the Concern annually hires an inde-pendent auditor as determined during the relevant tender.
Differences from 2015 Annual Report
The 2016 Annual Report basically differs due to transition to a revised version of the GRI Sustainability Reporting Standards. The 2015 Annual Report was prepared according to the previous version – GRI G4 Guidelines. Another difference is in the prioritized report subjects given in the Report Building Pro-cess subsection.
Disclaimer
Information included in this Annual Report contains, among other things, estimates and other forecasts as an attempt to describe future events or future fi nancial activities of the Concern. Such estimates and forecasts are speculative by their nature and may ulti-mately differ from real-life events or results. Forecast information is disclosed before the respective reporting period begins. Many of the existing factors may cause actual results to signifi cantly depart from those stated in our assumptions or estimates. This includes general economic conditions, competitive environment, risks related to the opera-tions inside and outside Russia, changes in technologies and the market situation in the
nuclear power industry, and other factors relevant to the Concern’s business.
For additional updates on the Concern’s activities, please visit http://www.rosenergoatom.ru
Selecting Material Topics of Activity
When preparing the Annual Report concept under the GRI Sustainability Reporting Standards, representatives of stakeholders and top management of the Concern participated in a survey in December 2014, as part of the fi rst dialog with stakeholders, to update and select material aspects of the Concern’s activ-ity and subsequent disclosure of these aspects in the Annual Report.
Following the survey, with due regard to the reporting principles used to determine the content of the Report, and in accord-ance with the public reporting standard, as well as with the Rules of Preparing Concern’s Public Annual Report, the con-cept of the Concern’s Annual Report was developed and approved determining the content and material aspects of activity subject to disclosure in the Report.
The ranking map was updated on the basis of the survey results. The methodology is as follows: the horizontal axis refl ects the aspect signifi cance for the compa-ny according to the survey among the Concern’s top managers, the vertical axis refl ects the aspect signifi cance for stake-holders according to the survey among them. Indicator values on each axis were determined as a ratio between the number of positive answers to the total number of respondents. The threshold value was de-termined to be equal to 0.5 on either axis. The aspects entering the said zone, taking into account the working group’s opinion, were considered material. They are marked in red and green.
The description of impact boundaries for the aspects is provided in the Concern’s 2013 Annual Report (pages 36-37). All ma-terial aspects are important for the organi-zation within the report perimeter. There are
102-45
102-46 102-56
102-46 102-49 103-1102-48102-47
200
Rosenergoatom / Annual report / 2016 25 years of safe operation
0
*
14
3 17
10
20
48
6
19 49
50 47
1;9
2;3542
Influ
ence
on
eval
uati
on
and
deci
sio
ns o
f st
akeh
old
ers
Significant economic, environmental, and social influences
1.00.5
0.5
1.0
no specifi c limits regarding aspect bound-aries within the organization. The issue of on-the-job injuries in supplying companies is considered material outside the organi-zation.
No restatements of the indicators are provid-ed in the previous reports. All data provided is correlated with the previous reports. The Emis-sions aspect has been deemed immaterial be-cause NPP emission values are situated close to the low limit of indicator measurement.
RANKING MAP OF MATERIAL ASPECTS OF ACTIVITY (GRI G4 GUIDELINES AND IIRC FRAMEWORK)
Material aspects
Material aspects
Immaterial aspects
Rosenergoatom Concern JSC
specifi c aspects are marked
with asterisks
201 1 Economic performance
2 Market presence
3 Indirect economic impacts
4 Procurement practices
5 Materials
6 Energy
7 Water
8 Biodiversity
9 Emissions
10 Discharges and waste
11 Products and services (ecology)
12 Conformance to requirements (ecology)
13 Transport
14 General information (ecology)
15 Evaluation of suppliers (ecology)
16 Procedures for submitting complaints (ecology)
17 Occupation
18 Relations between employees and management
19 Occupational health and safety
20 Training and education
21 Diversifi cation and equal opportunities
22 Equal remuneration of women and men
23 Evaluation of suppliers’ labor relation practices
24 Procedures for submitting complaints on labor relation practices
25 Investments
26 Non-discrimination
27 Freedom of associations and collective bargaining
28 Child labor
29 Forced and compulsory labor
30 Safety assurance practices
31 Rights of indigenous and small-numbered peoples
32 Evaluation
33 Evaluation of suppliers’ respect for human rights
34 Procedures for submitting complaints on violation of human rights
35 Local communities
36 Corruption Prevention
37 State policy
38 Competitive barriers
39 Conformance to requirements (society)
40 Evaluation of suppliers’ impact on society
41 Procedures for submitting complaints on social impacts
42 Consumer health and safety
43 Marking of products and services
44 Marketing communications
45 Consumer privacy
46 Conformance to requirement
47 Safe operation of NPPs *
48 Reliability of electricity supplies to consumers*
49 Public acceptance*
50 Interaction with state supervision agencies and non-governmental organizations*
51 Company transparency*
52 Charity and sponsorship projects*
53 Interaction with trade unions*
202
Rosenergoatom / Annual report / 2016 25 years of safe operation
Full Name: Russian Concern for Production of Electric and Thermal Energy at Nuclear Power Plants (Joint Stock Company).
Abbreviated Name: Rosenergoatom Concern JSC.
Location: Moscow.
Contact Phone: +7 (495) 647-41-89.
Fax: +7 (495) 647-46-03.
Email: [email protected]
Website: http://www.rosenergoatom.ru
Auditor Details: Accountants & Business Advisers (Limited Liability Company), location: 101990, Moscow, ul. Myasnitskaya, 44/1, str. 2AB, Primary State Registration Number: 1027700058286, Taxpayer Identifi cation Number/Taxpayer Classifi cation Code: 7701017140/770101001.
Registrar Details: Registrar R.O.S.T. (Joint Stock Company).
Registrar Location: Moscow.
Registrar Address: 107996, Moscow, ul. Stromynka, d. 18.
Details of License for Share Register Management:
License Number: 10-000-1-00264
Issue Date: December 3, 2002
Licensing Authority: Federal Commission for Securities Market
License Period: without restriction of the validity period.
Stockholders Details as of December 31, 2016: Rosatom State Corporation - 9.978%, Atomenergoprom JSC - 90.022%.
APPENDIX 2. CORPORATE AND CONTACT DETAILS
203 APPENDIX 3. GRI CONTENT INDEX
For Comprehensive Report Prepared Accord-ing to Global Reporting Initiative Sustainabili-ty Reporting Standards1, RSPP.
1. The Report passed external assur-ance by a third-party auditor. Appendix 7 – Non-Financial Audit Report, page 228.
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
GRI 101: Foundation 2016
General DisclosuresComprehensive Option
GRI 102: Gen-eral Disclosures 2016
Organizational Profi le
102-1 (G4-3) Appendix 2. Corporate and Contact Details 202
102-2 (G4-4) 1.1. General Information 13
102-3 (G4-5) Appendix 2. Corporate and Contact Details 202
102-4 (G4-6) The Concern runs its business in two countriesBusiness Geography1.3. Corporate Structure
6-7, 15
102-5 (G4-7) Appendix 2. Corporate and Contact Details 202
102-6 (G4-8) Business Geography 1.7. Situation in Power Industry
6–7, 36–37
102-7 (G4-9) Key Performance Indicators1.3. Corporate Structure2.4. Financial Results
4, 15, 100
102-8 (G4-10) Appendix 14. Main Personnel Characteristics 258 Accounting of contractors’ total number of employees is not performedThe Concern’s data col-lection system does not allow for presenting the information related to this indicator in full. The employ-ees headcount breakdown by employment contract is not specifi ed.
102-9 (G4-12) 1.5. Business Model and Capitals 18–23
204
Rosenergoatom / Annual report / 2016 25 years of safe operation
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
102-10 (G4-13) 2016 Calendar of Key Events1.1. General Information1.3. Corporate Structure4.1. Corporate Governance4.4. Purchase Management
2–3, 13, 15, 161, 184
102-11 (G4-14) 1.6. Risk Strategy and Management2.2. Ensuring Safety of Russian NPPs
28, 86
102-12 (G4-15) 1.1. General Information 13
102-13 (G4-16) 1.1. General Information2.6. International Scientifi c and Technical Cooperation
13, 109–111
G4 Sector Disclosures – Electric Utilities 2013
EU1 2.1. Generating Capacities. Developing Generating PotentialAppendix 12. Operating NPP Power UnitsAppendix 13.
41, 256–257
EU2 2.1. Generating Capacities. Developing Generating PotentialAppendix 12. Operating NPP Power UnitsAppendix 13.
41, 256–257
EU3 Not applicable as the Concern is not responsible for sales activity
EU4 Not applicable as the Concern is not responsible for power transmission
EU5 Not applicable as emissions of CO2 and equivalents are negligible
Strategy
102-14 (G4-1) Address by Board of Directors ChairmanAddress by CEO
8–11
102-15 (G4-2) 1.6. Risk Strategy and Management 28
Ethics and Integrity
102-16 (G4-56) 4.1. Corporate Governance4.2. Internal Control and Auditing3.1. HR PolicyAppendix 11. Corporate Governance Code Compliance Report
121, 161, 246
102-17 (G4-57, G4-58)
4.1. Corporate Governance 177
Governance
102-18 (G4-34) 4.1. Corporate Governance 164 The Board of Directors of Rosenergoatom Concern JSC has no committees.
102-19 (G4-35) 4.1. Corporate Governance3.1. HR PolicyRegulation on the Board of Directors: http://www.rosenergoatom.ru/resources/0728e8804f-4b0980aa0daac8c4699268/Pologenie_sd.pdf. (pages 14-15)
121, 161
205
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
102-20 (G4-36) 4.1. Corporate Governance 165, 168–170
102-21 (G4-37) 4.6. Interaction with Stakeholders4.7. Public Reporting System
191, 195 Special consultations among stakeholders and the supreme corporate gov-ernance body are not held
102-22 (G4-38) 4.1. Corporate Governance 165–169 The Board of Directors of Rosenergoatom Concern JSC has no committees.
102-23 (G4-39) 4.1. Corporate Governance 168–169
102-24 (G4-40) 4.1. Corporate Governance 166
102-25 (G4-41) 4.1. Corporate Governance Regulation on the Board of Direc-tors: http://www.rosenergoatom.ru/resources/0728e8804f-4b0980aa0daac8c4699268/Pologenie_sd.pdf. (pages 5-6)
177
102-26 (G4-42) 4.1. Corporate GovernanceRegulation on the Board of Directors: http://www.rosenergoatom.ru/resources/0728e8804f-4b0980aa0daac8c4699268/Pologenie_sd.pdf. (page 2)
165, 168–169
102-27 (G4-43) Special measures for gen-eration and improvement of collective knowledge of the supreme corporate governance body members are not taken.
102-28 (G4-44) 4.1. Corporate Governance 166
102-29 (G4-45) 1.6. Risk Strategy and Management 4.1. Corporate GovernanceRegulation on the Board of Directors: http://www.rosenergoatom.ru/resources/0728e8804f-4b0980aa0daac8c4699268/Pologenie_sd.pdf. (page 2)
28–29, 161 No special consultations with Stakeholders are held.
102-30 (G4-46) 1.6. Risk Strategy and Management4.1. Corporate GovernanceRegulation on the Board of Directors: http://www.rosenergoatom.ru/resources/0728e8804f-4b0980aa0daac8c4699268/Pologenie_sd.pdf. (page2)
29, 161
102-31 (G4-47) 4.1. Corporate Governance 167
102-32 (G4-48) Appendix 1. About Annual Report 198
102-33 (G4-49) 4.1. Corporate GovernanceRegulation on the Board of Directors: http://www.rosenergoatom.ru/resources/0728e8804f-4b0980aa0daac8c4699268/Pologenie_sd.pdf. (page 9)
161–167
102-34 (G4-50) 4.1. Corporate Governance 168–169
102-35 (G4-51) 4.1. Corporate Governance 176
102-36 (G4-52) 4.1. Corporate Governance 177
206
Rosenergoatom / Annual report / 2016 25 years of safe operation
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
102-37 (G4-53) 4.1. Corporate Governance 177
102-38 (G4-54) The indicator is not disclosed as there is no accounting for median sal-ary without account of the best-compensated person
102-39 (G4-55) 4.1. Corporate Governance The indicator is not disclosed as there is no accounting for median sal-ary without account of the best-compensated person
Stakeholder Engagement
102-40 (G4-24) 4.6. Interaction with Stakeholders 191, 193–195
102-41 (G4-11) 3.5. Developing Areas of Presence. Charity 152
102-42 (G4-25) 4.6. Interaction with Stakeholders 191–194
102-43 (G4-26) 4.6. Interaction with Stakeholders 191–194
102-44 (G4-27) 4.6. Interaction with StakeholdersAppendix 4. Table on Consideration of Suggestions by Stakeholders
191–194, 216
Reporting Practice
102-45 (G4-17) The Report information and data cover the activities of the Concern and its branches (NPPs).Appendix 1. About Annual Report
199
102-46 (G4-18) Appendix 1. About Annual Report 199
102-47 (G4-19) Appendix 1. About Annual Report 199
102-48 (G4-22) Appendix 1. About Annual Report 199
102-49 (G4-23) Appendix 1. About Annual Report 199
102-50 (G4-28) Appendix 1. About Annual Report 198–199
102-51 (G4-29) Appendix 1. About Annual Report 198
102-52 (G4-30) Appendix 1. About Annual Report 198–199
102-53 (G4-31) Appendix 17. Feedback Form 265
102-54 (G4-32) This Report is prepared according to GRI Standards: the Comprehensive Option
102-55 (G4-32) Appendix 3 (this appendix) 203
102-56 (G4-32, G4-33)
Appendix 1. About Annual ReportAppendix 6. Public Assurance Statement
199, 225
GRI 103: Management Approach 2016
103-1 (G4-20, G4-21)
Appendix 1. About Annual Report 199
207
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
ECONOMICS
GRI 201: Economic Performance 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 2.4. Financial Results 100–105
GRI 201: Eco-nomic Perfor-mance 2016
201-1 (G4-EC1) 2.4. Financial Results 100
201-2 (G4-EC2) 1.6. Risk Strategy and ManagementSpecifi c GRI indicators by categories/subcategories
28–31, 214 Evaluation of fi nancial implications and other risks and opportunities for the activities of the organiza-tion due to climate change was not carried out.
201-3 (G4-EC3) 3.5. Developing Areas of Presence. Charity 155
201-4 (G4-EC4) 2.5. Investment ProgramSpecifi c GRI indicators by categories/subcategoriesThe state holds no stock in the Concern.
106, 214
GRI 202: Market Presence 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.5. Developing Areas of Presence. Charity 152–159
GRI 202: Mar-ket Presence 2016
202-1 (G4-EC5) 3.1. HR Policy 124
202-2 (G4-ЕС6) Specifi c GRI indicators by categories/subcategories 214
GRI 203: Indirect Economic Impacts 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.5. Developing Areas of Presence. Charity 152–159
GRI 203: Indi-rect Economic Impacts 2016
203-1 (G4-EC7) 3.5. Developing Areas of Presence. Charity 152–159
203-2 (G4-EC8) 3.5. Developing Areas of Presence. Charity 152–159
GRI 204: Procurement Practices 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 4.4. Purchase Management 184–185
GRI 204: Procurement Practices 2016
204-1 (G4-EC9) 4.4. Purchase Management 184–185
GRI 205: Anti-Corruption 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 4.1. Corporate Governance 177–178
GRI 205: Anti-Corruption 2016
205-1 (G4-SO3) 4.1. Corporate Governance Specifi c GRI indicators by categories/subcategories
177, 215
208
Rosenergoatom / Annual report / 2016 25 years of safe operation
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
205-2 (G4-SO4) 4.1. Corporate Governance Specifi c GRI indicators by categories/subcategoriesAll minor executives and management bodies of the Con-cern are informed about the applicability of the Anti-Corrup-tion Policy and corruption prevention methods.
177, 215 The Concern’s data col-lection system does not allow for presenting the information related to this indicator in full. There is no breakdown of the number and share of employees who passed training and education by category and region
205-3 (G4-SO5) 4.1. Corporate Governance 177–178, 215
SUBJECT: AVAILABILITY AND RELIABILITY
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 1.6. Risk Strategy and Management 24–31
G4 Sector Disclosures – Electric Utilities 2013
EU10 Specifi c GRI indicators by categories/subcategories 214
ENVIRONMENT
GRI 302: Energy 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.4. Environmental Impact 144–151
GRI 302: Ener-gy 2016
302-1 (G4-EN3) 2.1. Generating Capacities. Developing Generating Potential 85 The Concern’s data col-lection system is based on energy consumption accounting in metric units. The Company intends to cover 302-1 disclosures in full in subsequent reports.
302-2 (G4-EN4) 2.1. Generating Capacities. Developing Generating PotentialSpecifi c GRI indicators by categories/subcategories
85, 214 Energy consumption out-side the organization is not accounted for.
302-3 (G4-EN5) Not calculated due to restrictions on disclosure of the 302-3 indicator
302-4 (G4-EN6) 2.1. Generating Capacities. Developing Generating Potential 85, 214 Due to changes in the Concern’s data collection system and processing procedures, the reporting for 2016 does not present information related to this indicator in full. Not dis-closed: indicator value in J.
302-5 (G4-EN7) Not applicable
GRI 303: Water 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.4. Environmental Impact 144–151
209
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
GRI 303: Water 2016
303-1 (G4-EN8) 3.4. Environmental Impact 147–148
303-2 G4-EN9 (G4-EN9)
3.4. Environmental Impact 147–148
303-3 (G4-EN10) 3.4. Environmental ImpactThe share of recycled and reused water averaged 476.2% of the total water intake.
147–148
GRI 306: Effl uents and Waste 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.4. Environmental Impact 144–151
GRI 306: Effl u-ents and Waste 2016
306-1 (G4-EN22) 3.4. Environmental Impact 149–150
306-2 (G4-EN23) 3.4. Environmental Impact 149–150
306-3 (G4-EN24) Specifi c GRI indicators by categories/subcategories 214
306-4 (G4-EN25) Specifi c GRI indicators by categories/subcategories 214
306-5 (G4-EN26) Specifi c GRI indicators by categories/subcategories 214
GRI 307: Environmental Compliance 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.4. Environmental Impact 144–151
GRI 307: Environmental Compliance 2016
307-1 (G4-EN29) 3.4. Environmental Impact 151
SOCIETY
GRI 401: Employment 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.1. HR Policy 121–131
GRI 401: Em-ployment 2016
401-1 (G4-LA1) Appendix 14. Main Personnel Characteristics 258 The data collection system used by the Concern does not permit to provide information on this indica-tor in full. Not disclosed: breakdown of the number and share of newly hired employees by gender and age; breakdown of the total number of outgoing em-ployees by age; breakdown of employee turnover by ageThe Concern intends to present the 401-1 disclo-sures in subsequent reports
401-2 (G4-LA2) Specifi c GRI indicators by categories/subcategories 215
210
Rosenergoatom / Annual report / 2016 25 years of safe operation
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
401-3 (G4-LA3) Specifi c GRI indicators by categories/subcategories 215 The information collec-tion system used by the Concern does not permit to calculate the share of em-ployees who were entitled to maternity/paternity leave, the number of employ-ees who took a leave and returned from the leave; the number of employees who continued work in 12 months after return to work, and the retention factor
G4 Sector Disclosures – Electric Utilities 2013
EU18 Specifi c GRI indicators by categories/subcategories 215
GRI 402: Labor/Management Relations 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.1. HR Policy 121–131
GRI 402: Labor/Management Relations 2016
402-1 (G4-LA4) Specifi c GRI indicators by categories/subcategories 215
GRI 403: Occupational Health and Safety 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.2. Labor Protection 132–135
GRI 403: Occu-pational Health and Safety 2016
403-1 (G4-LA5) 3.2. Labor Protection 133
403-2 (G4-LA6) 3.2. Labor Protection Specifi c GRI indicators by categories/subcategories
132–135, 215 The data collection system used by the Concern does not permit to provide infor-mation on this indicator in full. The Concern intends to present the 403-2 disclo-sures in subsequent reports
403-3 (G4-LA7) 2.3. Radiation Effect on Personnel and PopulationSpecifi c GRI indicators by categories/subcategories
93–99, 215
403-4 (G4-LA8) 3.2. Labor Protection 132
211
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
GRI 404: Training and Education 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.1. HR Policy 121–131
GRI 404: Training and Ed-ucation 2016
404-1 (G4-LA9) 3.1. HR Policy 126 The accounting breakdown by gender is not kept. The Concern intends to present the 404-1 disclosures in full in subsequent reports
404-2 (G4-LA10) Specifi c GRI indicators by categories/subcategories 215
404-3 (G4-LA11) 3.1. HR Policy 126
GRI 407: Freedom of Association and Collective Bargaining 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.1. HR Policy 121–131
GRI 407: Freedom of Association and Collective Bar-gaining 2016
407-1 (G4-HR4) Specifi c GRI indicators by categories/subcategories 215
GRI 410: Security Practices 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.1. HR Policy 121–131
GRI 410: Secu-rity Practices 2016
410-1 (G4-HR7) Specifi c GRI indicators by categories/subcategories 215
GRI 411: Rights of Indigenous Peoples 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.1. HR Policy 121–131
GRI 411: Rights of Indigenous Peoples 2016
411-1 (G4-HR8) Specifi c GRI indicators by categories/subcategories 197
GRI 412: Human Rights Assessment 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.1. HR Policy 121–131
GRI 412: Human Rights Assess-ment 2016
412-1 (G4-HR9) Human rights compliance or impact in connection with human rights were not evaluated.
212
Rosenergoatom / Annual report / 2016 25 years of safe operation
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
412-2 (G4-HR2) Specifi c GRI indicators by categories/subcategories 215
412-3 (G4-HR1) Specifi c GRI indicators by categories/subcategories 215
GRI 413: Local Communities 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.5. Developing Areas of Presence. Charity 152–159
GRI 413: Local Communities 2016
413-1 (G4-SO1) 3.5. Developing Areas of Presence. CharitySpecifi c GRI indicators by categories/subcategories
152–159, 215
413-2 (G4-SO2) 3.5. Developing Areas of Presence. CharitySpecifi c GRI indicators by categories/subcategories
G4 Sector Disclosures – Electric Utilities 2013
EU22 Specifi c GRI indicators by categories/subcategories 215
GRI 415: Public Policy 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 2.7. International business and new products4.2. Internal Control and Auditing
112-117, 179-182
GRI 415: Public Policy 2016
415-1 (G4-SO6) Specifi c GRI indicators by categories/subcategories 197
GRI 416: Customer Health and Safety 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 3.5. Developing Areas of Presence. Charity 152-159
GRI 416: Cus-tomer Health and Safety 2016
416-1 (G4-PR1) 2.2. Ensuring safety of Russian NPPs Specifi c GRI indicators by categories/subcategories
197
416-2 (G4-PR2) 2.2. Ensuring safety of Russian NPPs Specifi c GRI indicators by categories/subcategories
197
G4 Sector Disclosures – Electric Utilities 2013
EU25 3.1. HR Policy 121-131
GRI 419: Socioeconomic Compliance 2016
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 2.2. Ensuring safety of Russian NPPs 86–92
GRI 419: Socioeconomic Compliance 2016
419-1 (G4-SO8, G4-PR9)
Specifi c GRI indicators by categories/subcategories 215
213
GRI Standard Information Disclosure (GRI G4 Index Match)
Disclosure Comprehensiveness / Comment / Report Section Report Page and/or URL
Non-Compliance
Subject: Access
GRI 103: Management Approach 2016
103-1, 103-2, 103-3 2.1. Generating Capacities. Developing Generating Potential 41–85
G4 Sector Disclosures – Electric Utilities 2013
EU10 Appendix 13. 257
SPECIFIC ASPECTS OF ROSENERGOATOM CONCERN JSC
Aspect Report Section Report Page
Safe Operation of NPPs 2.2. Ensuring Safety of Russian NPPs 2.3. Radiation Effect on Personnel and Population
86–92, 93–99
Reliability of Electricity Supplies to Consumers 1.7. Situation in Power Industry 32–39
Public Acceptance 4.6. Interaction with Stakeholders 191–194
Interaction with State Supervision Agencies and Non-Governmental Organizations
4.6. Interaction with Stakeholders 191–194
Product Selling Prices 1.7. Situation in Power Industry 32–39
Company Transparency 4.6. Interaction with Stakeholders 191–194
Social Responsibility 3.5. Developing Areas of Presence. Charity 152–159
214
Rosenergoatom / Annual report / 2016 25 years of safe operation
SPECIFIC GRI INDICATORS BY CATEGORIES/SUBCATEGORIES
Category / Subcategory Comment to GRI Indicators
Economic • Evaluation of fi nancial implications and other risks and opportunities for the activities of the organization due to climate change was not carried out.
The government provided no fi nancial assistance in the reporting period.• The government does not participate in the organization as a stockholder.• Employees’ salaries do not depend on their gender.• 100% of top managers (deputy CEOs of the Concern – directors of branches – operating NPPs and NPPs under con-
struction) are citizens of the Russian Federation, where the Concern operates. Workforce migration occurs only within the Concern’s branches. Top managers in regions of the Concern’s core activities (regions where NPPs are located) are not hired from among the local community.
• Construction of nuclear power industry facilities is carried out according to the energy strategy of the Russian Federation until 2030 and the master plan of power industry facilities location until 2020, considering the period up until 2030.
Environmental • In 2014 NPPs did not discharge any waste water outside the schedule. The Concern did not discharge hot water since NPPs do not discharge hot water into surface waters thanks to the branch channel system and coolers.
• The Concern refers to the classifi cation established by Resolution No. 1069 dated October 19, 2012 of the Russian Federation Government on Criteria for Allocation of Solid, Liquid and Gaseous Waste to Radioactive Waste, Criteria for Allocation of Radioactive Waste to Special Radioactive Waste and Disposable Radioactive Waste, and Criteria for Classifi cation of Disposable Radioactive Waste.
• There were no signifi cant spills in the reporting period.• NPPs do not transport, import, or export hazardous waste.
Social / Labor practices and Employment
• All employees enjoy benefi ts irrespective of the number of their working hours.• Approximately 100% of employees return to work after child care leave.• 100% of the Concern’s contractor and subcontractor employees attend health and safety training.• The Concern complies with legislation of the Russian Federation (Labor Code) with respect to minimum notice periods
regarding signifi cant operational changes.• The Collective Bargaining Agreement provides for the notice on coming staff reduction. The indicated term is two
weeks.• The Rosenergoatom Concern JSC and industry-level documents do not contain any requirements on maintaining rates
of injury, occupational diseases, lost days, and absenteeism data. Information about the system of rules used in regis-tration of occupational accidents is contained in the Labor Code of the Russian Federation.
• Some employees of Rosenergoatom Concern JSC are professionally involved in activities associated with occupational hazard. These categories of employees are distributed according to classes of labor conditions.
• The system of obligatory training of employees adopted in Rosenergoatom Concern JSC provides for enhancing knowledge in the area of labor safety and acquisition of fi rst aid skills in case of occupational accidents and in every-day life. Educational and mandatory training programs implemented in the Concern enhance the professional level of employees and their subsequent employment in case of dismissal.
215
Category / Subcategory Comment to GRI Indicators
Social / Human Rights • All existing investment agreements are concluded in strict compliance with requirements of the Russian legislation and provide for conformance with human rights. No separate evaluation of conformance with human rights is carried out.
• Once employed, 100% of employees are made familiar with internal labor rules, policies, and procedures of the Compa-ny, including those related to human rights aspects. Training of each employee takes at least two hours.
• The Concern builds up its activity in strict compliance with the applicable legislation of the Russian Federation. In the reporting period there were no restrictions on freedom of associations and collective bargaining.
• Standard duty regulations for all of the Concern’s employees provide for knowledge of and compliance with legislation of the Russian Federation, which includes conformance with human rights. No third-party personnel are engaged in this type of work.
• No incidents of violations involving rights of indigenous and small-numbered peoples were identifi ed in the reporting period.
Social / Society • Pursuant to the Russian Federation laws, in all cases of planning of the activity which may signifi cantly affect the envi-ronment and local population, the Concern participates in public hearings and public discussions.
• The Concern has no subsidiaries which signifi cantly or adversely affect, in fact or potentially, the local community. Tak-ing into account the high level of safety of modern NPPs, nuclear plants cannot be considered as such subsidiaries.
• The Concern did not perform any activity requiring displacement of people.• There was no need to change the source of income due to the activity of the Concern in the reporting period.• The risks connected with corruption are evaluated on the basis of specifi c facts (communications) with respect to all
subsidiaries.• All regular employees and governing bodies of the Concern have been informed about the existence of the Anti-Cor-
ruption Policy in the organization and the policy practices.• According to the Federal Law No. 135-FZ dated August 11, 1995 on Charitable Activities and Organizations, and the
Guidelines for Accounting of Charitable Contributions (approved by Order No. 1/811-P dated September 26, 2011 of Rosatom State Corporation), no fi nancial contributions for political purposes are allowed.
• In the reporting period no signifi cant fi nes were applied to Concern for non-compliance with legal and statutory re-quirements.
Social / Product Responsibility
• Evaluation of nuclear, radiation, industrial, technical, and fi re safety is performed throughout the life cycle.• No incidents of non-compliance with regulations and voluntary codes concerning the impact on health and safety of
products and services were identifi ed in the reporting period.• No incidents of non-compliance with legal or statutory requirements were identifi ed in the reporting period (G4-PR7
and G4-PR9 indicators).
216
Rosenergoatom / Annual report / 2016 25 years of safe operation
APPENDIX 4. TABLE ON CONSIDERATION OF SUGGESTIONS BY STAKEHOLDERS
TABLE ON CONSIDERATION OF SUGGESTIONS BY STAKEHOLDERSACCORDING TO RESULTS OF DIALOGS WITH STAKEHOLDERS REGARDING 2016 ANNUAL REPORT OF ROSENERGOATOM CONCERN JSC
1. CONSIDERATION OF PREVIOUSLY ASSUMED OBLIGATIONS
Suggestions by Stakeholders Consideration of Suggestions
Road map for power units commissioning/decommissioning shall be included in the Report.
Partially accounted for in Section 2.1 - Generating Capacities. Developing Generating Potential. A road map for power units construction is included.
The report shall disclose the Concern’s vision of itself in implementing the Russian Federation development strategy, what indicators of this strategy are achieved with due consideration of decomposition of stra-tegic indicators of Rosatom State Corporation.
For additional information refer to Section 1.6 – Strategy and Risk Manage-ment.
The amount of disclosed information on forecast indicators shall in-crease, particularly revenues.
Accounted for in Section 1.7 - Situation in Power Industry (regarding planned KPIs).
2. CONSIDERATION OF SUGGESTIONS MADE DURING REPORTING CAMPAIGN OF 20162017
Suggestions by Stakeholders Consideration of Suggestions
REPORT CONCEPT RELATED SUGGESTIONS
Scientifi c and educational institutions, expert community
1. Supplementing the concept with the provisions related to the future report content, or specifying (explicating) main points of the report content.
Rejected. The concept refl ects general provisions and contents of the future report. Detailed information will be given at the stage of dialogs on prioritized subjects and public consultations on the draft report.
2. Supplementing the report with a special section devoted to safety and covering this subject in a comprehensive manner as regards to the prioritized subject of the issue.
Accounted for. Section 2.2 – Ensuring Safety of Russian NPPs is included into the contents.
Business partners
3. Supplementing with the section: Rosenergoatom Concern as Global Technology Leader.
Partially considered. The information in comparison with competitors is given in Section 1.7 – Situation in Power Industry.
Stockholders
4. Moving Section 3.1 to Chapter 2, after the Strategy. Adding a sep-arate section to Chapter 2 on the macroeconomic context of activi-ties, the megatrends, and the respective risks and possibilities of the Concern’s business.
Accounted for.
PRIORITIES REPORT SUBJECTS RELATED SUGGESTIONS
Scientifi c and educational institutions, expert community
5. Identifying the Investments clause as a signifi cant aspect. Rejected as the Investments clause is not signifi cant and does not corre-spond to the Investment Program defi nition according to the GRI Guide-lines / Standards terminology.
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Suggestions by Stakeholders Consideration of Suggestions
6. The State Policy clause is also identifi ed as not signifi cant, though state participation in the nuclear industry is not just signifi cant, since Rosatom State Corporation is government owned.
Declined as the State Policy aspect is not signifi cant to the Concern ac-cording to the GRI Guidelines / Standards terminology.
7. Including the Sci-Tech Policy and Innovations section into the report concept.
Accounted for. Section 3.3 – Sci-Tech Policy. Innovations. Knowledge Pres-ervation included.
8. Changing the wording of the Historical Background (25th Anniversa-ry).
Accounted for.
9. Supplementing or extending the report concept with the RAW and SNF handling subject.
Partially considered. As this information does not refer to the concept, it is given in a respective section of the report.
Business partners
10. Formulating the prioritized subject of the report in a more spe-cifi c way: either in the context of the company's anniversary, or in a broader context (the largest high-tech power generating company, etc.).
Accounted for: the prioritized subject of the report is 25 Years of Safe Operation of NPPs.
11. Highlighting the subject: Ensuring Advanced High-Tech Innovative Development.
Accounted for in Section 3.3 – Sci-Tech Policy. Innovations. Knowledge Preservation.
12. Supplementing the prioritized subjects with the Concern's prospects as 25 years is just the beginning.
Accounted for the Situation in Power Industry section (Development Pros-pects sub-section).
Stockholders
13. Adding the second prioritized subject based on milestones/results of 2016.
Accounted for: the second prioritized subject added – Sustainable Develop-ment Management.
SUGGESTIONS ON INFORMATION DISCLOSURE IN REPORT
Government bodies and local authorities
14. Covering the information about replacement stations construction (particularly, Kursk NPP-2) in the report.
Section 2.1 – Generating Capacities. Developing Generation Potential con-tains information about the issues related to NPP power units construction.
Scientifi c and educational institutions, expert community
15. Covering interaction with business partners in the report. Accounted for in the Business Model and Capitals section.
16. Moving Section 3.1 – Situation in Power Industry to the Strategy and Prospects section. This is essential due to the recent Energy Strategy of the Russian Federation until 2035 being approved by the Government.
Declined due to inexpediency.
17. Supplementing the report with two important subjects related to safety and refl ecting them in the contents: • Handling RAW and SNF;• Safety culture.
Accounted for in Section 2.1 – Generating Capacities. Developing Generat-ing Potential, and Section 2.2 – Ensuring Safe Operation of NPPs.
18. Adding the subject on growth (changes) in the volume of SFA seg-mentation and removal of spent fuel from RBMK-1000 NPPs (preferably with numbers and charts).
Accounted for in Section 2.1 – Generating Capacities. Developing Generat-ing Potential.
19. Giving information about the start of a RAW processing complex construction at the Kursk NPP to be used for the needs of the Kursk NPP-2 being built.
Accounted for in Section 2.1 – Generating Capacities. Developing Generat-ing Potential.
20. Request for covering the results of interaction between the Sverd-lovsk Oblast and the Concern in the annual report.
Accounted for in Section 3.5 – Developing Areas of Presence. Charity.
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Suggestions by Stakeholders Consideration of Suggestions
21. Supplementing the Concern’s scientifi c research section with the research results, including in money terms, obtained know-how, software, patents and inventions, and their value, changes in intangible assets of the Concern. Supplementing the same section with information about scientifi c research held together with universities, as part of thesis studies, inter alia.
Accounted for in Section 3.3 – Sci-Tech Policy. Innovations. Knowledge Preservation.
22. Refl ecting in the report the advantages of the Concern’s consolida-tion, including those in the global market.
The subject will be considered for the 2017 report
23. Specifying the details of the strategy, the goals, and the approaches to implementation.
The subject will be considered for the 2017 report
24. Drawing attention to intangible assets value, their evaluation and infl uence on the company value.
The subject will be considered for the 2017 report
Business partners
25. Reporting the information regarding the Concern’s participation in achievement of strategic targets by subsidiary companies.
Partially considered. Section 2.5 – Investment Program describes key investment projects of subsidiary companies; Section 2.6 – International Sci-Tech Cooperation specifi es the results of international activities.
26. Covering the information on Workspace Management. Will be covered in the following reports.
27. Considering addition of the Energy Indicators of Reporting Year sec-tion. Economic/energy indicators of the reporting year shall be refl ected.
Partially considered. The indicators are given in the respective sections of the report.
28. Reporting the prospects for NPPs construction in the Russian Fed-eration, the Concern's plans in this area until 2050.
Accounted for in Section 2.1 – Generating Capacities. Developing Generat-ing Potential.
29. Reporting the Concern’s satisfaction with the Engineering Division activities, evaluation of constructed NPPs, estimation of costs and timeframes, usability.
Declined due to inexpediency. Such evaluation may be sent in an individual manner.
Environmental organizations
30. Moving the Ensuring Safety of Russian NPPs subject prioritized in the report according to parameters from Section 3 (Key Performance Results) to a separate section gathering the information related to: • Ensuring safety of Russian NPPs; • Radiation impact on personnel and population; • Environmental impact of NPPs.
Partially considered. Section 2 – Safe Operation of NPPs includes the said sub-sections, inter alia.
Subsidiaries and branches
31. Covering the information on the Concern’s subsidiaries. The concept and procedure of interaction with subsidiary companies.
Accounted for in Section 4.1 – Corporate Governance.
32. Supplementing the report with information about the results of the Rosatom State Corporation contest for the Industry-Level Organization of Environmental Excellence, and the winners.
Accounted for in Section 3.4 – Environmental Impact.
Stockholders
33. Reporting not only the results of 25 years, but the future develop-ment vector based on the Rosatom State Corporation development strategy approved in 2016.
Accounted for in Section 1.6 – Strategy and Risk Management.
34. Wider coverage in the report of strategic importance, connection of separate projects and common targets, objectives and activities. Spec-ifying how it may be related to core businesses, targets of the State Corporation, and what each project is aimed at.
Accounted for in Section 1.6 – Strategy and Risk Management.
35. Considering the possibility to compare the Concern’s indicators with Russian and global peers.
Accounted for in Section 1.7 – Situation in Power Industry.
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Suggestions by Stakeholders Consideration of Suggestions
36. Describing in a more detailed and understandable way why the current approaches and social development areas are used.
Accounted for in Section 3.5 – Developing Areas of Presence. Charity.
37. Reducing the report volume. Accounted for, a part of the text, including appendices, will be placed into the interactive version of the report.
Environmental organizations
38. Supplementing the report with information on the monitoring of the Concern’s system of RAW and SNF handling held by the Oka En-vironmentalist Movement in 2016 at the Novovoronezh and Leningrad NPPs in the form of a case study.
Accounted for
39. Taking efforts to adapt international standards to Russian reality and the nuclear power industry specifi cs.
The subject will be considered for the 2017 report
Mass media
40. Supplementing the report with information related to the Novovor-onezh NPP-2 shut-down.
Accounted for in Section – Risk Management
41. Specifying details of facilities decommissioning. Accounted for
Trade union organizations
42. Considering the provisions of the Paris climate agreement and expressing the Concern’s stand on this matter.
The subject will be considered for the 2017 report
Auditing and consulting organizations
43. Showing the effi ciency of accident prevention measures in the annual report.
Accounted for in Section - 3.2. Labor Protection
44. Performing monitoring of the Concern’s positions in international ratings and indices and supplementing the next year’s report with such information.
The subject will be considered for the 2017 report
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APPENDIX 5. SYSTEM OF PUBLIC REPORTING INDICATORS AT ROSENERGOATOM CONCERN JSC
Indicator Item Report Section / Chapter
MAINLINE ACTIVITY EFFICIENCY
Electricity Supply to National Economy
1.1.1. Electricity generation by NPPs 1.1.1.1. Share of electricity produced by NPPs in the total power output of the Russian Federation
2.1. Generating Capacities. Developing Gener-ating Potential
1.1.1.2. Electricity production by nuclear power plants in the reporting period
2.1. Generating Capacities. Developing Gener-ating Potential
1.1.2. Use of installed capacity of NPPs
1.1.2.1. NPP capacity factor 2.1. Generating Capacities. Developing Gener-ating Potential
1.2.1. Power units capacity increase 1.2.1.1. Target for increase of equivalent capacity 2.1. Generating Capacities. Developing Gener-ating Potential
1.2.1.3. Number of retrofi tted VVER-1000 units (in reporting period and total)
2.1. Generating Capacities. Developing Gener-ating Potential
1.2.1.4. Number of retrofi tted RBMK units (in reporting period and total)
2.1. Generating Capacities. Developing Gener-ating Potential
1.2.2. Service life of power units 1.2.2.1. Number of power units with service life extended to 15 years in the reporting period
2.1. Generating Capacities. Developing Gener-ating Potential
1.2.2.2. Number of NPP power units for which the documents for service life extension, upgrade and retrofi tting were pre-pared
2.1. Generating Capacities. Developing Gener-ating Potential
1.2.3. Power units operation mode 1.2.3.5. Total reduced time of planned repairs, after reschedul-ing, including through
reducing repair times; rescheduled repair start without changing its total duration
2.1. Generating Capacities. Developing Gener-ating Potential
1.2.3.7. Availability ratio 2.1. Generating Capacities. Developing Gener-ating Potential
1.3.1. Power units built and commis-sioned in the Russian Federation
1.3.1.1. Number of power units under construction in the Rus-sian Federation
2.1. Generating Capacities. Developing Gener-ating Potential
Securing Leadership for Russian Companies in Global Markets
2.1.1. Financial stability 2.1.1.1. Gross profi t 2.4. Financial Results
2.1.1.2. Total profi t tax accrued and paid 2.4. Financial Results
2.1.1.3. Net operating profi t after taxes (NOPAT) 2.4. Financial Results
2.1.1.4. Income (total products (work and services) sold) 2.4. Financial Results
2.1.2. Production effi ciency 2.1.2.1. Labor productivity 2.4. Financial Results
2.1.2.2. Own production effi ciency (added value) 2.4. Financial Results
2.1.3. Financial stability 2.1.3.1. Debt / equity ratio 2.4. Financial Results
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Indicator Item Report Section / Chapter
2.1.3.2. Signifi cant funds obtained from the government 2.4. Financial Results
2.2.1. Positions of Russian engi-neering in global NPP construction market
2.2.1.1. Number of power plants under construction abroad (in the reporting period)
2.7. International business and new products
2.3.1. Investments in equity in the reporting period
2.3.1.1. Total spending under the investment policy (indicating the share of funds used to retrofi t plants and technology)
2.5. Investment Program
Assurance of Nuclear and Radiation Safety
4.1.1. Projects to create national sys-tems to process RAW and SNF
4.1.1.1. Pieces of legislation to support creation of unifi ed state systems for RAW and SPF handling were adopted
2.2. Ensuring Safety of Russian NPPs
4.1.4. Emergency response and readiness
4.1.4.1. Description of reliable safety barriers for nuclear and radiation hazardous sites and their life cycle planning
2.2. Ensuring Safety of Russian NPPs
4.1.4.2. Description of the emergency response system, including improvement of safety control monitoring systems at nuclear power facilities, organization of professional rescue teams
2.2. Ensuring Safety of Russian NPPs
4.1.4.3. Description of public alert and communication systems 2.2. Ensuring Safety of Russian NPPs
4.1.4.4. Description of protection system for employees, popu-lation, and areas in radiation emergencies
2.3. Radiation Effect on Personnel and Popu-lation
4.1.5. Assuring physical protection of nuclear power facilities
4.1.5.1. Description of up-to-date engineering and technologi-cal systems of control and personnel access management
2.3. Radiation Effect on Personnel and Popu-lation
4.2.2. Violations during handling of nuclear and radiation hazardous materials
4.2.2.1. Number of registered cases at nuclear power facilities according to the International Nuclear Event Scale (INES)
2.3. Radiation Effect on Personnel and Popu-lation
4.3.1. Decommissioning 4.3.1.1. Number of decommissioned nuclear and radiation hazardous sites
2.2. Ensuring safety of Russian NPPs
4.4.1. Reclamation of contaminated territories
4.4.1.1. Area of reclaimed contaminated territories 2.2. Ensuring safety of Russian NPPs
Creating Innovative Nuclear Technologies and Promoting Them to Various Sectors of Economy
5.1.1. Inventions related to use of nuclear power
5.1.1.1. Number of patents, utility models, and industrial samples 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
5.1.2.3. Expenses on R&D 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
5.2.2. Participation in international innovation projects
5.2.2.1. Participation in implemented international innovation projects (INRFC, ITER, Generation-IV, and FAIR)
2.6. International Scientifi c and Technical Cooperation2.7. International business and new products
5.3.1. VVER-TOI 5.3.1.1. Description of work accomplished in the reporting year 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
5.3.1.2. Work plan implementation progress 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
5.3.3. Floating NPP 5.3.3.1. Description of work accomplished in the reporting year 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
5.4.3. Line of fast breeder reactors 5.4.3.1. Description of work accomplished in the reporting year 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
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Indicator Item Report Section / Chapter
5.5.2. Radiation technologies 5.5.2.2. Description of plans for radiation technology develop-ment (targets, tasks, and effi ciency)
3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
5.3.1. VVER-TOI 5.3.1.1. Description of work accomplished in the reporting year 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
5.3.1.2. Work plan implementation progress 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
5.3.3. Floating NPP 5.3.3.1. Description of work accomplished in the reporting year 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
5.4.3. Line of fast breeder reactors 5.4.3.1. Description of work accomplished in the reporting year 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
5.5.2. Radiation technologies 5.5.2.2. Description of plans for radiation technology develop-ment (targets, tasks, and effi ciency)
3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
Creating Effi cient Management Mechanisms for Nuclear Industry
6.1.2. Implementation of the Rosa-tom Production System project
6.1.2.1. Results of implementation of the program to raise pro-duction effi ciency (reduced area of preparation shops; shorter production cycle; fewer defects per specifi c components; lower manufacturing cost of specifi c equipment; and greater output in specifi c product positions)
2.1. Generating Capacities. Developing Gener-ating Potential
6.1.2.2. Economic benefi t from implemented production devel-opment programs and cost reduction in business units
2.1. Generating Capacities. Developing Gener-ating Potential
6.1.3. Reorganizing fi nancial and economic management
6.1.3.1. Evaluation of reorganization results (evaluation of targets achieved)
4. Management Effi ciency
6.1.5. Purchase management 6.1.5.1. Tools used to ensure more open and transparent pur-chasing
4.4. Purchase Management
6.1.5.2. Total savings as a result of open tender purchasing procedures (% and rubles)
4.4. Purchase Management
6.1.6. Developing in-house commu-nication
6.1.6.1. Projects to develop communication channels between executives and employees
4.6. Interaction with Stakeholders
6.1.8. Risk Management 1.6. Risk Strategy and Management
6.1.9. IT-based management 6.1.9.1. List of IT implementation projects 3.3. Sci-Tech Policy. Innovations. Knowledge Preservation and Transfer
6.1.11. Control of fi nancing and busi-ness activities
4.2. Internal Control and Auditing
Making Development of Nuclear Power Industry Publicly Acceptable
7.1.1. Public reports of the Concern and its organizations
7.1.1.1. Compliance with international requirements for non-fi -nancial reporting and interaction with stakeholders
Appendix 1. About Annual Report
7.1.1.2. Interaction with stakeholders while preparing public reports
4.6. Interaction with Stakeholders
7.1.1.3. Compliance with corporate requirements to public reporting
Appendix 1. About Annual Report
7.1.2. Industry information resources 7.1.2.1. Number of information centers 4.6. Interaction with Stakeholders
7.1.2.2. Public and culture activities (museums, popular science, career consulting, and others)
4.6. Interaction with Stakeholders
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Indicator Item Report Section / Chapter
7.1.2.3. Industry-level mass media 4.6. Interaction with Stakeholders
9.1.2. Training for Employees 9.1.2.1. Employees subject to routine performance evaluation and career development
3.1. HR Policy
9.1.2.3. Expenses on training of employees 3.1. HR Policy
9.1.3. Building and using human reserves
9.1.3.1. Number of employees in the succession pool 3.1. HR Policy
9.1.3.2. Share of employees appointed to vacant positions from the succession pool
3.1. HR Policy
EFFICIENCY IN SUSTAINABLE GROWTH
Environmental Impact (Impact on Environment and Environmental Protection)
11.1.4. Initiatives to reduce hazardous atmospheric emissions, reduction achieved
11.1.4.1. Information on initiatives to reduce hazardous atmos-pheric emissions
3.4. Environmental Impact
11.1.5. Initiatives to reduce harmful discharge to water bodies, reduction achieved
11.1.5.1. Information on initiatives to reduce harmful discharges to water bodies
3.4. Environmental Impact
11.1.5.2. Quantitative data on reduction of harmful discharges to water bodies
3.4. Environmental Impact
11.1.11. Environmental management systems adopted in structural units of the Corporation
11.1.11.1. Number of structural units certifi ed for compliance with ISO 14001
3.4. Environmental Impact
11.2.5. Consumption of water for own needs
11.2.5.1. Consumption of water for own needs 3.4. Environmental Impact
11.3.15. Payments for air-polluting emissions from permanent and mo-bile sources, discharges of pollutants to surface and ground water bodies, and emplacement of production and consumption waste
11.3.15.1. Payments for air-polluting emissions from permanent and mobile sources, discharges of pollutants to surface and ground water bodies, and emplacement of production and consumption waste
3.4. Environmental Impact
11.5.1. Radionuclide emissions to atmosphere
11.5.1.1. Total radionuclide emissions to atmosphere 3.4. Environmental Impact
11.5.2. Discharge of waste waters containing radionuclides
11.5.2.1. Volume of discharge of waste waters containing radi-onuclides
3.4. Environmental Impact
11.5.2.2. Total activity of waste waters containing radionuclides 3.4. Environmental Impact
11.5.4. Radionuclide-polluted areas 11.5.4.1. Area of radionuclide-polluted areas 3.4. Environmental Impact
11.5.4.2. Gamma radiation dose in polluted areas 3.4. Environmental Impact
Social and Labor Relations (Organization of Labor and Decent Work)
12.1.8. Average paycheck compared to labor market average
12.1.8.1. Average paycheck compared to labor market average 3.1. HR Policy
12.3.3. Number of employees with non-government pension plans
12.3.3.1. Number of employees with non-government pension plans
3.5. Developing Areas of Presence. Charity
12.3.4. Total personnel expenses 12.3.4.1. Total personnel expenses 3.1. HR Policy
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Indicator Item Report Section / Chapter
12.3.5. Total expenses on social pro-grams for employees
12.3.5.1. Total expenses on social programs for employees 3.5. Developing Areas of Presence. Charity
12.3.6. Social payments per employ-ee per year
12.3.6.1. Social payments per employee per year 3.5. Developing Areas of Presence. Charity
12.3.7. Expenses on additional health insurance
12.3.7.1. Expenses on additional health insurance 3.5. Developing Areas of Presence. Charity
12.4.5. Control of personnel exposure to radiation
12.4.5.1. Annual average effective exposure of personnel to radiation
2.3. Radiation Effect on Personnel and Popu-lation
12.4.5.2. Number of cases when established standard exposure limits were exceeded
2.3. Radiation Effect on Personnel and Popu-lation
12.4.5.4. Share from the total number of employees subject to individual radiation control, included in the ARMIR system
2.3. Radiation Effect on Personnel and Popu-lation
12.4.5.5. Share of employees exposed to negligible risk of radiation
2.3. Radiation Effect on Personnel and Popu-lation
12.4.5.6. Share of employees exposed to life-long radiation risk 2.3. Radiation Effect on Personnel and Popu-lation
INFLUENCE ON SOCIAL AND ECONOMIC SITUATION IN AREAS OF PRESENCE
Interaction with Society
13.2.1. Preparing restricted access municipalities development program
13.2.1.1. Preparing restricted access municipalities development program
3.5. Developing Areas of Presence. Charity
13.4.1. Charity projects and the vol-ume of funds for these projects
13.4.1.1. Charity projects and the volume of funds for these projects
3.5. Developing Areas of Presence. Charity
Ethical Practices and Public Regulation
14.4.2. Organization format for ethi-cal practices
14.4.2.1. Existence of the Ethics Code 4.1. Corporate Governance
225 APPENDIX 6. PUBLIC ASSURANCE STATEMENT
STATEMENT OF PUBLIC ASSURANCE OF ROSENERGOATOM CONCERN JSC 2016 ANNUAL REPORT
Preamble
Rosenergoatom Concern JSC (herein-after – the Concern) requested that we assess its 2016 Annual Report, the com-pleteness and relevance of information disclosed therein, and the way Rosener-goatom Concern JSC responds to and takes into account stakeholders’ sugges-tions and inquiries.
We have the required knowledge and competencies in corporate responsibili-ty, sustainable growth, and non-fi nancial reporting. While we comply with ethical requirements of independent and unbi-ased judgment, we express our personal opinion as experts, but not that of the corporate entities we represent.
We were offered an opportunity to participate in public consultations that discussed the draft Report held on April 21, 2017, and in dialogs with stakehold-ers. On November 18, 2016, an absentee dialog was held in Moscow where the concept of the 2016 Annual Report was discussed by over 30 representatives of stakeholders. On February 21, 2017, a dialog meeting was held with stakehold-ers in the city of Zarechny, Sverdlovsk Oblast at the Beloyarsk Nuclear Power Plant (branch of Rosenergoatom Con-cern JSC) to discuss prioritized subjects of the Concern’s 2016 Annual Report. Over 115 representatives of stakehold-ers participated in the dialog meeting in
person and via videoconferencing. In the course of these activities all participants and stakeholder representatives were able to ask questions and state their opinions without any restrictions. The following materials were given to us: draft and the final version of the 2016 Annual Report, and minutes of dialogs and hearings, including the table on consideration of suggestions made by stakeholders.
As a merit of the 2016 Report, we should note that the international standards (Global Reporting Initiative Sustainability Reporting Standards, Institute of Social and Ethical Accountability АА1000 Series Standards) were applied during the proce-dure of preparation and public affi rmation of the Report. However, this statement is not intended to evaluate the conform-ance of the Report with the international reporting systems.
We are unaware of any facts that would make us question any information contained in the Report. However, this public affi rma-tion is not intended to confi rm the authen-ticity of the actual data contained in the Report. We have not received any remuner-ation from the Concern for our participation in the public affi rmation procedure.
The text of this statement has been ap-proved by all signatories. The Concern may use it for internal purposes and for commu-nications with stakeholders, and publish it without any changes.
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Evaluations, Comments, and Recommendations
Based on all information we received and analyzed, including the Report text, corporate website, and collective discussion, we confi rm the following:
• In the 2016 Report the Concern disclosed all material aspects of its activity sig-nifi cant to stakeholders, including safe operation of nuclear power plants during 25 years, sustainability management, including the impact made by the Concern on the environment, society, and economy in its areas of presence, and the man-agement system effi ciency. All material aspects of activities are disclosed with a reasonable level of detail.
• The Report represents the Concern’s stra-tegic development priorities to a suffi cient extent and describes its approaches to implementation of responsible business practice principles.
• The Report contains information signifi -cant for stakeholders. The priority subjects of the Report were selected taking into account the opinion of stakeholders after the dialogs held with them. We regard the format and scope of information represent-ed in the Report favorably.
• The Report is prepared in accordance with the Global Reporting Initiative Sustainability Reporting Standards, the principle of selecting particular material aspects and interaction with stakehold-ers was implemented (in compliance with АА1000SES Standard recommendations). The stakeholders actively participated in discussions during the dialogs, public consultations, and public affi rmation. In 2015, the Ranking Map of material aspects of the Concern’s activities was updated in close cooperation with various groups of stakeholders.
• During preparation of the Annual Report, the Concern’s management enthusiastically responded to opinions, suggestions, and recommendations made by the stakehold-ers involved in the discussions and dialogs.
Noting the advantages of the 2016 Report, we think that the following suggestions shall
be taken into account in the subsequent reporting cycles:
• Work shall be continued to ease the under-standing of the Report content, to reduce the number of redundant terms, and those intelligible to a small group of experts only, to make the description of core processes reader-friendly.
• Comprehensive description shall be made of the Concern’s contribution to econom-ic development of the areas of presence, including creation and enhancement of infrastructure facilities in small towns and nuclear industry cities.
• Attention shall be paid to comprehensive disclosure of information on managing fi nancial and non-fi nancial risks (environ-mental, social, etc.).
Most questions raised by representatives of stakeholders were answered in the course of dialogs and public consultations. We would like to make a special note about the ac-tive use of modern communication means (website, blogs, virtual tours, availability of feedback, etc.) by the Concern to keep the community and all stakeholders informed about Concern’s position.
Interaction with Stakeholders, Consideration of Their Comments and Suggestions.
During its activities that involved stake-holders between November 2016 and April 2017, the Concern made available extensive information about its strategic goals, de-velopment priorities, and operating perfor-mance. We would like to note the wide circle of participants who actually represented key stakeholders, and the active role of the Con-cern’s management in the discussions.
Our experience shows that the Concern’s management actively responds to stakehold-ers’ questions, comments, and suggestions. In particular, it is confi rmed by adjustment of the fi nal version of the Report which contains clarifi cations and additional information in-cluded as per suggestions of the participants involved in the discussions.
We conclude that during preparation of the fi nal version of the 2016 Annual Report the
227 Concern’s management demonstrated a high level of availability, openness for dia-log, and positive response to problems and suggestions indicated by stakeholders. In view of the above, we favorably evaluate the
Member of the Energy Committee under the State Duma of the Federal Assembly of the Russian Federation
G.I. Sklyar
Chairman of the Social Policy Committee under the Federation Council of the Federal Assembly of the Russian Federation
V.V. Ryazansky
Director of the WANO Moscow Center V.I. Aksenov
Chairman of the Green Cross Inter-Regional Public Environmental Organiza-tion
S.I. Baranovsky
President and CEO of the Nongovernmental Ecological Fund named after V.I. Vernadsky
V.A. Grachev
Head of Bellona Ecology and Law Center A.K. Nikitin
Chairman of the Oka Inter-Regional Environmentalist Movement A.V. Khasiev
Director of the Nuclear Safety Institute under the Russian Academy of Sciences
L.A. Bolshov
Head of Kurchatov Center of Nuclear Technologies, Kurchatov Institute Yu.M. Semchenkov
Managing Director for Corporate Responsibility, Sustainable Development and Social Entrepreneurship of the Russian Union of Industrialists and Entrepreneurs
E.N. Feoktistova
Chairman of the Russian Trade Union of Nuclear Power Industry Employees I.A. Fomichev
Chairman of the Association of Areas of Presence of Nuclear Plants Fund (AAP NP Fund), Head of the Novovoronezh urban district
S.A. Chestikin
Concern’s Report and support the Concern’s commitment to the principles of responsible business practice. We also confi rm that the 2016 Report of the Concern has successfully passed public assurance.
228
Rosenergoatom / Annual report / 2016 25 years of safe operation
APPENDIX 7. NONFINANCIAL AUDIT REPORT
229
230
Rosenergoatom / Annual report / 2016 25 years of safe operation
231
232
Rosenergoatom / Annual report / 2016 25 years of safe operation
APPENDIX 8. REPORT OF INTERNAL CONTROL DEPARTMENT OF ROSENERGOATOM CONCERN JSC
REPORT OF INTERNAL CONTROL DEPARTMENT OF ROSENERGOATOM CONCERN JSC ON INTERNAL AUDITING OF ROSENERGOATOM CONCERN JSC 2016 ANNUAL REPORT BUILDING PROCESSES COMPLIANCE WITH REQUIREMENTS OF ROSATOM STATE CORPORATION PUBLIC REPORTING POLICY, AND ROSENERGOATOM CONCERN JSC PUBLIC ANNUAL REPORTING STANDARD
The internal audit of preparation of the public Annual Report of Rosenergoatom Concern JSC (hereinafter – the Concern) is performed in accordance with the Rules for Organization and Performance of Internal Audit as part of the Internal Audit process carried out by the Internal Audit Depart-ment of the Concern approved by order No. 9/300-P dated March 24, 2015 of the Concern taking into account the Rosatom State Corporation Public Reporting Policy approved by order No. 1/403-P dated May 13, 2011 of Rosatom State Corporation as amended by order No. 1/1069-P dated November 11, 2015, the Concern’s Public Annual Reporting Standard approved by order No. 9/526-P dated June 6, 2012 of the Concern, basic provisions of the GRI Sustainability Reporting Guidelines (GRI Standards), Institute of Social and Ethical Accountability AA1000 series international standards, and the International Integrated Reporting Council Standard.
In the course of the audit:
• The effi ciency of the internal control system with respect to preparation of
public reporting (including analysis of regulation and formal description of key processes related to preparation of public reporting) was assessed;
• Compliance with the public report preparation procedure with applicable Russian legislation, international stand-ards, and corporate standard require-ments that regulate the public report building process was checked;
• Recommendations on steps to improve the internal control system during preparation of public reporting were developed.
In general, the public report building pro-cess of Rosenergoatom Concern JSC was carried out according to the applicable laws, international standards, and internal standard requirements that regulate the public report building process. Meanwhile, the task force noted a need for updating local regulations with due consideration of the requirements of the applicable Rosa-tom State Corporation Public Reporting Policy.
Task Force Head Z.A.Zhukova
233
Accounting Balance Sheet Statement as of December 31, 2016
Codes
OKUD Form 0710001
Date (day, month, year) 31/12/2016
Organization: Rosenergoatom Concern JSC by OKPO 08844275
Taxpayer ID: INN 7721632827
Type of economic activities: Generation of electricity by nuclear power plants, including the activities related to their operability assurance
by OKVED 35.11.3
Form of incorporation/ownership:
Non-public joint stock company / state corporation ownership by OKOPF/OKFS 12267 61
Units of measurement: thousand rubles by OKEI 384
Location (address): ul. Ferganskaya, d. 25, Moscow 109507
Comments Item Description Code As of December 31, 2016 December 31, 2015 December 31, 2014
2.3, 6.1 ASSETSI. NON-CURRENT ASSETSIntangible assets
1110 1,131,343 1,081,940 1,119,114
2.5, 6.2 Results of research and development 1120 11,274,312 6,227,962 6,220,566
Intangible development assets 1130 — — —
Tangible development assets 1140 — — —
2.4, 6.3 Fixed assets 1150 1,349,063,997 1,268,280,560 1,188,688,823
Buildings, machines, equipment and other fi xed assets 1151 608,857,823 475,622,137 379,301,528
6.4 Construction in progress invested in fi xed assets 1152 681,783,774 714,085,152 690,723,601
6.5, 6.9 Advanced payments to suppliers and contractors for capital construction, suppliers of fi xed asset items
1153 58,422,400 78,573,271 118,663,694
6.3 Yield-bearing investments in material values 1160 47,756 42,533 84,270
2.7, 6.6 Financial investments 1170 42,184,374 36,776,120 36,344,996
Deferred tax assets 1180 — — —
6.7 Miscellaneous non-current assets 1190 69,210,261 35,881,039 26,826,311
In-progress capital investments in R&D 1191 15,287,550 21,941,181 20,399,661
Non-current receivables 1192 7,360,058 5,350,552 5,536,253
Deferred expenses for electric grid connection 1193 45,641,076 7,624,904 —
Section I subtotal 1100 1,472,912,043 1,348,290,154 1,259,284,080
APPENDIX 9. ACCOUNTING (FINANCIAL) STATEMENTS
234
Rosenergoatom / Annual report / 2016 25 years of safe operation
Comments Item Description Code As of December 31, 2016 December 31, 2015 December 31, 2014
2.6, 6.8 II. CURRENT ASSETSInventory
1210 45,628,163 49,987,437 47,862,422
Materials, stock and similar assets 1211 45,153,819 48,868,172 46,528,168
Expenses for work in progress 1212 — — —
Finished products and resellable stock 1213 458,778 947,930 1,164,497
Shipped goods 1214 15,566 171,335 169,757
Miscellaneous inventory and costs 1219 — — —
Value Added Tax on values purchased 1220 458,778 947,930 1,164,497
6.9 Accounts receivable 1230 15,566 171,335 169,757
Settlements with buyers and customers 1231 458,778 947,930 1,164,497
Advanced payments issued 1232 15,566 171,335 169,757
Miscellaneous debtors 1233 458,778 947,930 1,164,497
Underbillings 1234 — — —
2.7, 6.10 Financial investments (except cash equivalents) 1240 33,889,870 20,293,355 14,572,714
6.11 Cash and equivalents 1250 19,750,160 17,980,760 5,860,813
Miscellaneous current assets 1260 1,179,404 212,569 166,255
Section II subtotal: 1200 141,182,069 122,379,946 96,542,691
BALANCE 1600 1,614,094,112 1,470,670,100 1,355,826,771
Form 0710001 Page 2
Comments Item Description Code As of December 31, 2016 December 31, 2015 December 31, 2014
6.14 LIABILITIESIII. EQUITY AND PROVISIONSRegistered capital (share capital, registered fund, partners’ contributions)
1310 793,122,540 671,516,563 671,516,563
Treasury shares 1320 — — —
6.14 Shareholders' capital contributions before records of con-stituent documents
1330 — 98,075,834 55,297,167
Revaluation of non-current assets 1340 — — —
Surplus capital (not revalued) 1350 — 6,959 25,496
6.14 Reserve capital 1360 244,382,900 251,825,792 223,627,151
6.15 Provisions established under legal requirements 1361 241,511,688 249,650,660 221,913,928
Provisions established under incorporation documents 1362 2,871,212 2,175,132 1,713,223
Retained profi ts (unrecovered loss) 1370 350,524,071 275,394,723 229,550,964
Section III subtotal 1300 1,388,029,511 1,296,819,871 1,180,017,341
2.8, 6.17 IV. LONG-TERM LIABILITIESBorrowed funds
1410 68,434,347 33,865,335 81,697,638
235
Comments Item Description Code As of December 31, 2016 December 31, 2015 December 31, 2014
Deferred tax liabilities 1420 15,129,057 6,186,146 1,869,716
6.20 Appraisal-related liabilities 1430 3,816,039 3,030,328 3,365,287
6.21 Miscellaneous liabilities 1450 52,596,608 9,474,451 3,059,045
Long-term accounts payable (suppliers and contractors) 1451 51,466,087 8,300,710 57,965
Section IV subtotal 1400 139,976,051 52,556,260 89,991,686
2.8, 6.17 V. SHORT-TERM LIABILITIESBorrowed funds
1510 26,696,308 54,066,556 12,752,173
6.22 Accounts payable 1520 50,038,466 57,411,598 62,907,455
Suppliers and contractors 1521 37,164,082 41,768,906 47,684,318
Advance payments received 1522 39,453 61,839 429,990
Owed to employees 1523 988,885 1,141,588 900,189
Owed to government off-budget funds 1524 498,486 505,805 386,121
Debts in taxes and duties 1525 2,755,967 2,568,899 1,890,250
Miscellaneous creditors 1526 8,591,593 11,364,561 11,616,587
6.12 Deferred revenue 1530 1,195,248 1,271,463 1,227,656
6.20 Appraisal-related liabilities 1540 7,978,096 8,394,872 8,661,579
6.13 Special-purpose fi nancing 1546 180,432 149,480 268,881
Owed to customers 1547 — — —
Miscellaneous liabilities 1550 — — —
Section V subtotal 1500 86,088,550 121,293,969 85,817,744
BALANCE 1700 1,614,094,112 1,470,670,100 1,355,826,771
Manager A.Yu. Petrov Chief Accountant A.V. Shalimov
February 20, 2017
236
Rosenergoatom / Annual report / 2016 25 years of safe operation
Profi t and Loss Statement for Year 2016
Codes
OKUD Form 0710002
Date (day, month, year) 31/12/2016
Organization: Rosenergoatom Concern JSC by OKPO 08844275
Taxpayer ID: INN 7721632827
Type of economic activities: Generation of electricity by nuclear power plants, including the activi-ties related to their operability assurance
by OKVED 35.11.3
Form of incorporation/owner-ship:
Non-public joint stock company / state corporation ownership by OKOPF/OKFS 12267 61
Units of measurement: thousand rubles by OKEI 384
Comments Item Description Code 2016 2015
2.10, 7.1 Revenues 2110 282,035,779 263,756,643
Electricity 2111 188,465,168 177,605,032
Capacity 2112 87,880,766 81,839,361
2.11,7.1 Sales costs 2120 (176,452,597) (160,140,548)
Electricity 2121 (115,929,396) (106,444,708)
Capacity 2122 (54,057,544) (49,049,100)
Gross profi t/loss 2100 105,583,182 103,616,095
Commercial expenses 2210 (21,775) (21,165)
Administrative costs 2220 (78,224,142) (81,298,268)
Profi t/loss after sales 2200 27,337,265 22,296,662
Gains from interest held in other corporate entities 2310 3,242,011 1,626,256
Interest receivable 2320 3,890,334 6,329,333
Interest payable 2330 (1,618,891) (1,476,772)
7.2 Miscellaneous incomes, including 2340 5,131,289 7,976,882
Asset sales 2341 1,785,365 4,367,069
Fines and penalties 2342 858,313 461,182
Insurance compensations 2343 345,565 220,978
In the form of surplus of the value of property contributed to registered (sabre) capital, com-pared to the book value
2344 563,387 15,166
Recovery of provisions for remuneration payment 2345 — 302,158
7.2 Miscellaneous expenses, including 2350 (17,789,514) (13,624,087)
Asset sales 2351 (1,299,164) (4,245,576)
Depreciation, repair, upgrade and reconstruction of fi xed and current assets 2352 (4,510,866) (266,360)
237
Comments Item Description Code 2016 2015
Bad debt provision 2353 (749,984) (3,152,617)
Charity and subscriptions 2354 (1,338,043) (1,094,103)
Social expenses 2355 (1,482,462) (1,300,936)
Gratuitous conveyance of property 2356 (365,711) (500,053)
Profi t/loss before tax 2300 20,192,494 23,128,274
6.18 Current profi t tax 2410 (1,032,659) (5,215,022)
6.18 Including fi xed tax liability/assets 2421 (5,931,131) (4,895,581)
2.9 Change in deferred tax liability 2430 (9,001,926) (4,179,456)
2.9 Change in deferred tax assets 2450 64,955 (126,759)
Other 2460 51,349 (38,401)
6.18 Profi t tax reallocation within the consolidated taxpayers group 2465 331,094 352,965
Net profi t/loss 2400 10,605,307 13,921,601
Result of non-current assets revaluation not included in the net profi t/loss of the period 2510
Result of miscellaneous operations not included in the net profi t/loss of the period 2520 65,213,161 32,365,531
Consolidated fi nancial result of the period 2500 75,818,468 46,287,132
REFERENCE
7.3 Base profi t/loss per share of stock 2900 0.000,015,79 0.000,020,73
Diluted profi t/loss per share of stock 2910
Manager A.Yu. Petrov Chief Accountant A.V. Shalimov
February 20, 2017
238
Rosenergoatom / Annual report / 2016 25 years of safe operation
Equity Dynamics Statement for Year 2016
Codes
OKUD Form 0710002
Date (day, month, year) 31/12/2016
Organization: Rosenergoatom Concern JSC by OKPO 08844275
Taxpayer ID: INN 7721632827
Type of economic activities: Generation of electricity by nuclear power plants, including the activi-ties related to their operability assurance
by OKVED 35.11.3
Form of incorporation/owner-ship:
Non-public joint stock company / state corporation ownership by OKOPF/OKFS 12267 61
Units of measurement: thousand rubles by OKEI 384
1. Cash Flow
Item Description Code RegisteredCapital
Treas-ury
Shares
Shareholders' Capital Contributions before Records of Constitu-
ent Documents
SurplusCapital
ReserveCapital
RetainedProfi t/
UncoveredLoss
TOTAL
Size of capital as of December 31, 2014
3100 671,516,563 55,297,167 25, 496 223,627,151 229,550,964 1,180,017,341
For year 2015Increment in capital, total:
3210 42,778,667 70,933,873 46,305,668 160,018,208
Including, net profi t 3211 Х Х —
Revaluation of assets 3212 Х Х Х 13,921,601 13,921,601
Income recognized directly as capi-tal increment
3213 Х Х Х
Additional issue of shares 3214 Х —
Increase in par value of shares 3215 70,933,873 70,933,873
Reorganization of corporate entity 3216 Х —
Industry-level provisions use for investment purposes
3217 Х Х Х —
Shareholders' capital contributions before records of constituent documents
3218 Х Х —
Decrement in capital, total: 3220 — — — (18,537) (43,197,141) — (43,215,678)
Including, loss 3221 Х Х Х Х
Revaluation of assets 3222 Х Х Х
Expenses recognized directly as capital decrement
3223 Х Х (18,537) (43,197,141) (43,215,678)
Decrease in par value of shares 3224 X
Decrease in number of shares 3225 Х
Reorganization of corporate entity 3226
Dividends 3227 Х Х Х Х
239
Item Description Code RegisteredCapital
Treas-ury
Shares
Shareholders' Capital Contributions before Records of Constitu-
ent Documents
SurplusCapital
ReserveCapital
RetainedProfi t/
UncoveredLoss
TOTAL
Shareholders' capital contributions before records of constituent documents
3228 Х Х Х Х Х
Change in surplus capital 3230 Х Х Х Х
Change in reserve capital 3240 Х Х Х Х 461,909 (461,909) Х
Size of capital as of December 31,2015
3200 671,516,563 — 98,075,834 6,959 251,825,792 275,394,723 1,296,819,871
For year 2016Increment in capital, total:
3310 121,605,977 — 23,530,143 — 68,219,826 75,825,428 289,181,374
Including, net profi t 3311 Х Х Х Х Х 10,605,307 10,605,307
Revaluation of assets 3312 Х Х Х Х
Income recognized directly as capi-tal increment
3313 Х Х Х 68,219,826 68,219,826
Additional issue of shares 3314 121,605,977 Х 121,605,977
Increase in par value of shares 3315 Х —
Reorganization of corporate entity 3316 —
Industry-level provisions use for investment purposes
3317 Х Х Х Х Х 65,220,121 65,220,121
Shareholders' capital contributions before records of constituent documents
3318 Х Х 23,530,143 Х Х Х 23,530,143
Decrement in capital, total: 3320 — — (121,605,977) (6,959) (76,358,798) — (197,971,734)
Including, loss 3321 Х Х Х Х —
Revaluation of assets 3322 Х Х Х —
Expenses recognized directly as capital decrement
3323 Х Х (6,959) (76,358,798) (76,365,757)
Decrease in par value of shares 3324 Х —
Decrease in number of shares 3325 Х —
Reorganization of corporate entity 3326 —
Dividends 3327 Х Х Х Х —
Shareholders' capital contributions before records of constituent documents
3328 Х Х Х (121,605,977) Х Х (121,605,977)
Change in surplus capital 3330 Х Х Х Х
Change in reserve capital 3340 Х Х Х Х 696,080 (696,080) Х
Size of capital as of December 31, 2016
3300 793,122,540 — — — 244,382,900 350,524,071 1,388,029,511
240
Rosenergoatom / Annual report / 2016 25 years of safe operation
2. Adjustments Due to Accounting Policy Change and Correction of Errors
Item Description Code December 31, 2015 Equity Changes in 2016 December 31, 2016
On Account of Net Profi t/Loss Other
Equity, totalbefore adjustments adjustment due to:accounting policy change correction of errorsafter adjustments
3400
3410
3420
3500
includingretained profi t/ uncovered loss: before adjustments adjustment due to:accounting policy change correction of errorsafter adjustments
3401
3411
3421
3501
other equity items adjusted (per item) before adjustments adjustment due to:accounting policy change correction of errorsafter adjustments
3402
3412
3422
3502
3. Net Assets
Item Description Code December 31, 2016 December 31, 2015 December 31, 2014
Net assets 3600 1,389,224,759 1,298,091,334 1,181,244,997
Manager A.Yu. Petrov Chief Accountant A.V. Shalimov
February 20, 2017
241
Cash Flow Statement for Year 2016
Codes
OKUD Form 0710002
Date (day, month, year) 31/12/2016
Organization: Rosenergoatom Concern JSC by OKPO 08844275
Taxpayer ID: INN 7721632827
Type of economic activities: Generation of electricity by nuclear power plants, including the activi-ties related to their operability assurance
by OKVED 35.11.3
Form of incorporation/owner-ship:
Non-public joint stock company / state corporation ownership by OKOPF/OKFS 12267 61
Units of measurement: thousand rubles by OKEI 384
Item Description Code 2016 2015
CASH FLOW FROM CURRENT OPERATIONS
Revenues - total 4110 286,877,618 263,124,075
Including:from sold products, work, services
4111
payments in lease, rent, royalty fees, commission fees and similar amounts 4112 278,181,615 258,835,931
resold fi nancial investments 4113
miscellaneous revenue 4119 184,858 260,022
Payments, total 4120
Including:to suppliers/contractors, for materials, products, work, services
4121 8,511,145 4,028,122
to employees 4122 (163,883,031) (154,265,288)
interest payable on debentures 4123 (99,261,651) (96,276,841)
corporate profi t tax 4124
miscellaneous payments 4129 (39,228,584) (36,101,168)
Balance of cash fl ow from current operations 4100 (1,755,722) (1,078,127)
CASH FLOW FROM INVESTMENTS
Revenues - total 4210 (6,891,054) (6,312,424)
Including:from sold non-current assets (except fi nancial investments)
4211 (16,746,020) (14,496,728)
from sold corporate stock or holdings in other corporate entities 4212 122,994,587 108,858,787
from repaid loans issued, sold debentures (claim rights to third parties) 4213 458,542,199 342,642,871
dividends, interest on fi nancial debt investments, and similar revenue from holdings in other corporate entities
4214
miscellaneous revenues 4219 1,288,500 2,989,804
242
Rosenergoatom / Annual report / 2016 25 years of safe operation
Item Description Code 2016 2015
Payments - total 4220
Including:to purchase, create, upgrade, retrofi t and set up non-current assets
4221 1,468,655
to purchase corporate shares (stakes) in other corporate entities 4222 450,780,587 330,635,844
to purchase debentures (claim rights to third parties), issue loans to third parties 4223 6,356,748 7,466,893
interest payable on debentures included in the price of an investment asset 4224 116,364 81,675
miscellaneous payments 4229 (610,220,815) (475,726,059)
Balance of cash fl ow from investments 4200 (133,233,378) (131,964,131)
CASH FLOW FROM FINANCIAL OPERATIONS
Revenues - total 4310 101,634,834 93,113,244
Including:Received loans and credits
4311 78,104,691 50,334,578
Cash investments from owners (stakeholders) 4312
from issued shares or increased stakes 4313 23,530,143 42,778,666
from issued bonds, promissory notes, security debentures, etc. 4314
government budget allocations, and other government fi nancing 4315
miscellaneous revenues 4319
Payments - total 4320 (71,143,771) (56,815,863)
Including
to incorporators/stakeholders to fi nance buyout of shares/stakes in the corporate capital, or their retire-ment from the corporation
4321
Paid as dividends and otherwise to distribute profi ts among owners/stakeholders 4322
redemption/buyout of promissory notes and other securities, repayment of loans and credits 4323 (71,141,890) (56,815,116)
Miscellaneous payments 4329 (1,881) (747)
Balance of cash fl ow from fi nancial operations 4300 30,491,063 36,297,381
Balance of cash fl ow for the reporting period 4400 1,807,034 12,072,980
Balance of cash and equivalents at the beginning of the reporting period 4450 17,980,002 5,859,105
Balance of cash and equivalents at the end of the reporting period 4500 19,750,160 17,980,002
Impact by change of foreign currency exchange rate to the ruble 4490 (36,876) 47,917
Manager A.Yu. Petrov Chief Accountant A.V. Shalimov
February 20, 2017
243 APPENDIX 10. AUDITOR’S REPORT CERTIFYING ANNUAL ACCOUNTING STATEMENTS
244
Rosenergoatom / Annual report / 2016 25 years of safe operation
AUDITOR’S REPORT
For Stockholders of Russian Concern for Production
of Electric and Thermal Energy at Nuclear Power Plants
(Joint Stock Company)
Audited Entity
Corporate Name:
Russian Concern for Production of Electric and Thermal Energy at Nuclear Power Plants (Joint Stock Company), hereinafter – Rosenergoatom Concern JSC.
Location:
109507, Moscow, ul. Ferganskaya, d. 25
Statutory Registration:
Registered by Federal Tax Service Interdistrict Tax Inspectorate No. 46 in the city of Mos-cow, on September 17, 2008; Certifi cate: series 77 No. 010416448. Record of September 17, 2008 in the Unifi ed State Register of Legal Entities, Primary State Registration Number 5087746119951.
Auditor
Corporate name:
Accountants & Business Advisers Limited Liability Company (FBK LLC).
Location:
101990, Moscow, ul. Myasnitskaya, 44/1, str. 2AB.
Statutory registration:
Registered by Moscow Chamber of Registration, on November 15, 1993, Certifi cate: series UZ 3 No. 484.583 RP. Record of July 24, 2002, in the Unifi ed State Register of Legal Enti-ties, Primary State Registration Number 1027700058286.
245
Membership in Self-Regulated Association of Auditors:
Sodruzhestvo Association (Self-Regulated Organization of Auditors).
ID Record in Registry of Self-Regulated Organization of Auditors:
Certificate of membership in Sodruzhestvo Association (Self-Regulated Or-ganization of Auditors), No. 7198, ORNZ (Primary Registration Entry Number) 11506030481.
We have reviewed the attached accounting statements fi led by Rosenergoatom Concern JSC comprising its Accounting Balance Sheet Statement as of December 31, 2016, Profi t and Loss Statement, appendices to the Accounting Balance Sheet State-ment and the Profi t and Loss Statement, including the Equity Dynamics Statement and the Cash Flow Statement for 2016, notes to the accounting (fi nancial) state-ments.
Audited Entity’s Responsibility for Its Accounting Statements
The audited entity’s management shall assume responsibility for the aforementioned annual accounting statements in compliance with Russian accounting standards, and shall enforce the internal control system as may be required to prepare annual accounting statements free of any material misrepresentation through either fraudu-lence or error.
Auditor’s Responsibility
Our responsibility is to shape and state our opinion as regards reliability of the annual accounting statements based on the review conducted by ourselves. We conducted the audit in conformity with Russian Federal auditing standards, which require that we should adhere to applicable standards of ethics, and that we should plan and conduct our audit in a manner that ensures reasonable certainty that the annual accounting statements are free of any material misrepresentation.
Our review consisted of auditing procedures designed to obtain auditing evidence to confi rm numeric values and disclosure of information in the annual accounting state-ments. Selection of such auditing procedures was based on our judgment, which in turn relied on assessment of the risk of material misrepresentation through either fraudulence or error. As we assessed such risk, we examined the internal control sys-tem used to prepare and verify the annual accounting statements, and the purpose of such examination was to enable selection of auditing procedures, but not to express an opinion about effi ciency of the said internal control system.
246
Rosenergoatom / Annual report / 2016 25 years of safe operation
Our audit also established compliance of the adopted corporate accounting policy and the grounds underlying the value indicators furnished by the management of the au-dited entity, as well as integral assessment of the fi led annual accounting statements as a whole.
We hold that the evidence collected in the course of our audit give suffi cient grounds for our judgment about the annual accounting statements as true and reliable.
Opinion
It is our opinion that the reviewed annual accounting statements reliably represent all relevant aspects of the fi nancial situation in Rosenergoatom Concern JSC as of December 31, 2016, its fi nancial and business performance, and its cash fl ows during 2016, in conformity with the Russian standards for accounting statements.
S.M. Shapiguzov
FBK LLC President
By virtue of the Articles of Association,
Auditor Qualifi cation Certifi cate 01-001230, ORNZ
(Primary Registration Entry Number) 29501041926
Auditor’s Report date: March 1, 2017
247
248
Rosenergoatom / Annual report / 2016 25 years of safe operation
APPENDIX 11. REPORT ON CONCERN’S COMPLIANCE WITH CORPORATE GOVERNANCE CODE RECOMMENDED BY THE BANK OF RUSSIA
The Concern ensures equal and fair treat-ment of all stockholders exercising their right to participate in corporate govern-ance. The board of directors is an effi cient and professional corporate governance body capable of making reasonable and independent judgments and decisions
that correspond to the interests of the company and its stockholders. Members of the board of directors act in good faith and reason for the benefi t of the compa-ny and its stockholders on the basis of suffi cient information, with due regard and consideration.
Item Corporate Governance Principles
Criteria for Assessment of Compliance with Corpo-rate Governance Principle
Status of Compliance with Corporate Governance Principle
Explanation of Deviation from Criteria for Assessment of Compli-ance with Corporate Governance Principle
1.1. The company shall be equal and fair in relation to all stockholders exercising their right to participate in corporate governance.
1.1.1 The company creates most favorable condi-tions for stockholders to participate in the general meeting, to take a reasonable stand on the items of the general meeting agenda, to coordinate their efforts, and to ex-press their opinions on the considered issues.
1. The company’s internal document approved by the general meeting of stockholders is publicly available. The document governs the general meeting procedures.
Compliant
2. The company provides available ways of com-munication with the community, such as a ‘hotline’, email, or Internet forum allowing the stockhold-ers to express their opinion and send questions regarding the agenda items during preparations for the general meeting. The said actions were taken by the company before every general meeting held during the reporting period.
Partially com-pliant
The Concern did not establish the ‘hotline’ in 2016. Meanwhile, the Concern provides accessible means of communication with two stockholders (through email, Unifi ed Industry-Wide Document Management System). Therefore, all stockholders are treated in an equal and fair way in exercising their rights.
249
Item Corporate Governance Principles
Criteria for Assessment of Compliance with Corpo-rate Governance Principle
Status of Compli-ance with Corpo-rate Governance Principle
Explanation of Deviation from Criteria for Assessment of Compliance with Corporate Governance Principle
1.1.2 The procedure of general meetings arrangement and general meeting materi-als provision enables the stockholders to appropri-ately prepare for taking part in it.
1. A notice of the general meeting of stockholders is posted (published) on the Internet no later than 30 days before the general meeting date.
Non-compliant As the Concern has two stockholders, they were given due notice delivered by courier, and they are supplied with the required materials through available com-munication channels.
2. The general meeting notice specifi es the meeting venue and the documents required for admission to the venue.
Compliant
3. The stockholders were provided with access to information on who proposed the agenda items, and the nominees for the company’s board of directors and auditing committee.
Compliant
1.1.3 During preparations for the general meeting and during the meeting itself the stockholders were provided with unhampered and timely delivery of informa-tion on the meeting and the related materials, they were capable of asking questions to members of the company’s manage-ment bodies and board of directors and communicat-ing with each other.
1. In the reporting period, the stockholders were given opportunities to ask members of the com-pany’s management bodies and board of directors before the annual general meeting and during it. 2. The position of the board of directors (including individual opinions recorded in the minutes of the meeting) regarding each item of agenda of the general meetings held in the reporting period was included in the materials related to the general meeting of stockholders. 3. The company provided the entitled stockhold-ers with the access to a list of persons authorized to participate in the general meeting, starting from the date of its delivery to the company in all cases of general meetings during the reporting period.
Compliant
1.1.4 Execution of stockhold-ers’ rights to convene the general meeting, to make nominations for the management bodies, and propose items to be put on the general meeting agenda was not related to unreasonable complica-tions.
1. In the reporting period, the stockholders were able to propose items to be included in the annual general meeting, during at least 60 days after the end of the respective calendar year.2. In the reporting period, the company did not reject proposals on agenda items or nominees for the management bodies due to misspelling and other insignifi cant errors in the stockholder’s proposal.
Compliant
1.1.5 Each stockholder was able to seamlessly exercise their voting right in the manner they found most conven-ient and easy.
1. The company's internal document (internal policy) contains provisions entitling a participant of the general meeting to request a copy of the bulleting fi lled by the participant and certifi ed by the vote count panel.
Non-compliant
250
Rosenergoatom / Annual report / 2016 25 years of safe operation
Item Corporate Governance Principles
Criteria for Assessment of Compliance with Corporate Governance Principle
Status of Compli-ance with Corpo-rate Governance Principle
Explanation of Deviation from Criteria for Assessment of Compliance with Corpo-rate Governance Principle
1.1.6 The procedure estab-lished by the company for the general meeting ensures equal oppor-tunities for all persons attending the meeting to express their opinions and ask questions.
1. When general meetings were held in the reporting period in the form of meetings (joint attendance by stockholders), enough time was allocated for reports on the agenda items and for discussion of the items.2. Nominees for the management and super-vision bodies were available for answering the stockholders’ questions at the meetings when they were nominated for voting.
Compliant
3. When adopting resolutions related to prepa-ration and organization of general meeting of stockholders, the board of directors considered the issue of telecommunications use in order to provide the stockholders with remote ac-cess to participation in general meetings in the reporting period.
Non-compliant As there are two stockholders in the Concern, the issue of telecommunications use was not considered due to the fact that they are both able to participate in the meetings of stockholders, which is suffi cient for exercising their stockholder rights.
1.2 Stockholders are provided with equal and fair opportunities to share the company’s profi ts via distribution of dividends.
1.2.1 The company developed and implemented a clear and transparent mecha-nism for determining the dividend size and their payment.
1. The company developed and disclosed the dividend policy, which was approved by the board of directors.2. If the company’s dividend policy uses the company’s reporting indicators to determine the dividend size, then the respective provi-sions of the dividend policy specify consolidat-ed indicators of fi nancial statements.
Non-compliant The Board of Directors has not approved the dividend policy. At the same time, recommendations for the dividend policy of Rosatom State Corporation business entities were approved with a local regu-lation in order to observe the operations support principle.
1.2.2 The company does not resolve to pay out dividends, if such a reso-lution, without violation of legal restrictions, is economically unviable and may lead to miscon-ception of the compa-ny’s activities.
1. The company’s dividend policy contains an explicit description of fi nancial/economic cir-cumstances, which shall prevent the company from paying out the dividends.
Compliant A resolution on payout (passing) of divi-dends is adopted by the general meeting of stockholders. Recommendations for the dividend policy of Rosatom State Corpora-tion business entities contain basic terms and conditions for dividends payout. See Item 1.2.1.
1.2.3 The company does not allow for impairment of dividend rights of the existing stockholders.
1. In the reporting period, the company did not take measures to impair the dividend rights of existing stockholders.
Compliant The company does not allow for impair-ment of dividend rights of all existing stockholders.
1.2.4 The company strives to eliminate the possibil-ities for stockholders to use other ways of getting profi t (income) on the account of the company, besides the dividends and liquidation value.
1. For the purpose of eliminating the possibil-ities for the stockholders to use other ways of getting profi t (income) on the account of the company, besides dividends and liquida-tion value, the company’s internal documents specify the control mechanisms that ensure timely discovery and a procedure for approval of transactions with entities affi liated (related) to substantial stockholders (persons entitled to dispose the votes attached to voting stocks).
Compliant The company rules out the possibility for the stockholders to use other ways of getting profi t (income), besides the divi-dends. The local regulation also approved procedural guidelines for analysis of appli-cations and planned transactions for arm’s length principle observation.
251
Item Corporate Governance Principles
Criteria for Assessment of Compliance with Corporate Governance Principle
Status of Compli-ance with Corpo-rate Governance Principle
Explanation of Deviation from Criteria for Assessment of Compliance with Corpo-rate Governance Principle
1.3 The system and practice of corporate governance ensure equal conditions for all stockholders – owners of stock of one category (type), including minority stockholders and foreign stockholders, as well as equal attitude to them on behalf of the company.
1.3.1 The company creat-ed conditions for fair attitude to each stock-holder on behalf of the company’s manage-ment and supervisory bodies, including the conditions prevent-ing abuse by majority stockholders in relation to minority stockhold-ers.
1. During the reporting period, the procedures for management of potential confl icts of inter-est among the substantial stockholders were effi cient. The board of directors properly tackled the confl icts among stockholders, if any.
Compliant Equal conditions are ensured for all stock-holders, there were no confl icts of interest. In addition, the Concern approved and enacted the Procedural Guidelines for Rosenergoatom Concern JSC Employ-ees’ actions to prevent any possibility of confl icts of interest, for notifying about confl icts of interest, and for consideration of such notices.
1.3.2 The company does not take measures that lead, or may lead, to contrived redistribution of corpo-rate control.
1. There are no quasi-treasury stocks, or these did not participate in voting during the report-ing period.
Compliant
1.4 Stockholders are provided with reliable and effi cient ways of registering their title to stocks and a possibility of free and unhampered transfer of their stocks.
1.4 Stockholders are provid-ed with reliable and effi -cient ways of registering their title to stocks and a possibility of free and unhampered transfer of their stocks.
1. The quality and reliability of activities of the company's registrar related to maintaining re-cords of stock holders correspond to the needs of the company and its stockholders.
Compliant
2.1 The board of directors performs strategic management of the company, defines basic principles and approaches to organization of the company’s risk management and internal control system, supervises the activities of the company’s executive bodies, and exercises other key functions.
2.1 The board of directors is responsible for making decisions related to appointment and re-moval of executive body members, particularly in case of misconduct. The board of directors also makes sure that the company’s executive bodies act according to the approved develop-ment strategy and the company’s core business lines.
1. The articles of association provide the board of directors with powers to appoint and remove members of executive bodies and defi ne condi-tions of their contracts.2. The board of directors considered the report (reports) of the sole executive body and mem-bers of the collegiate executive body on the company’s strategy implementation.
Compliant
252
Rosenergoatom / Annual report / 2016 25 years of safe operation
Item Corporate Governance Principles
Criteria for Assessment of Compliance with Corporate Governance Principle
Status of Compliance with Corporate Governance Principle
Explanation of Deviation from Criteria for Assessment of Compliance with Corporate Governance Principle
2.1.2 The board of directors sets the guiding principles for the company’s long-term activi-ties, evaluates and approves key performance results and basic business targets of the company, assesses and proves the strategies and business plans for major areas of the company’s activities.
1. During the reporting period, the board of directors considered the progress in execu-tion and updating of the strategy, as well as the approval of the cost estimates (budget) of the company, and reviewed the criteria and indicators (including interim) of the company’s strategy and business plans implementation.
Compliant The Board of Directors considered the matter of the budget and investment program approval in 2016.
2.1.3 The board of directors defi nes the principles and approaches to organization of the risk management and internal con-trol system of the company.
1. The board of directors defi ned the principles and approaches to organization of the risk management and internal control system of the company.2. The board of directors assessed the com-pany’s risk management and internal control system during the reporting period.
Partially compliant
The risk policy is approved by internal local regulations.
2.1.4 The board of directors de-fi nes the company's policy for remuneration and (or) reimbursement of expens-es (compensation) of the board of directors members, members of the company’s executive bodies and other top executives.
1. The company developed and implement-ed, and the board of directors approved the policy (policies) for remuneration and reimbursement of expenses (compensation) of the board of directors members, members of the company’s executive bodies and other top executives.2. The board of directors considered the mat-ters related to the said policy (policies) during the reporting period.
Non-compli-ant
Payment of remuneration to the Board of Directors is not mandato-ry, the procedures for defi ning the remuneration of the board of directors member will be developed in case such a decision is made by the Concern’s stockholders.
2.1.5 The board of directors plays a key role in prevention, detection, and settlement of internal confl icts among the company's bodies, stockhold-ers, and employees.
1. The board of directors plays a key role in pre-vention, detection, and settlement of internal confl icts.2. The company created an identifi cation system for transactions related to confl icts of interest and a system of measures aimed at settling such confl icts.
Compliant
2.1.6 The board of directors plays a key role in ensuring the company’s transparency, time-liness and completeness of information disclosure by the company, as well as unham-pered access of stockholders to the company’s documents.
1. The board of directors approved a provision on information policy.2. The company defi ned the persons respon-sible for implementation of the information policy.
Partially com-pliant
The Concern discloses information voluntarily. The information policy is approved by a local regulatory act.
253
Item Corporate Governance Principles
Criteria for Assessment of Compliance with Corporate Governance Principle
Status of Compli-ance with Corpo-rate Governance Principle
Explanation of Deviation from Criteria for Assessment of Compliance with Corporate Governance Principle
2.1.7 The board of directors exercises control of the corporate governance practice in the company and plays a key role in important corporate events of the company.
1. The board of directors considered the corpo-rate governance practice in the company during the reporting period.
Compliant
2.2 The board of directors reports to the company’s stockholders.
2.2.1 Information on the activities of the board of directors is disclosed and provided to the stockholders.
1. The company’s annual report for the reporting period includes information on the attendance of meeting of the board of directors and com-mittees by individual directors.
Compliant
2. The annual report contains information on major results of evaluation of the work performed by the board of directors during the reporting period.
Non-compliant Performance of the Board of Directors was not evaluated in 2016.
2.2.2 The chairman of the board of directors is available for communica-tion with the company’s stockholders.
1. The company adopted a transparent proce-dure enabling the stockholders to ask the board of directors chairman questions and express their opinions related to such matters
Compliant
2.3 The board of directors is an effi cient and professional corporate governance body capable of making reasonable and independent judgments and decisions that correspond to the interests of the company and its stockholders.
2.3.1 Only those persons who have spotless business and personal reputation, the skills and experience required for making decisions within the competence of the board of directors and for effi cient discharge of its functions are elected members of the board of directors.
1. The procedure adopted by the company for evaluation of effi ciency of the board of directors includes assessment of professional qualifi ca-tions of the board of directors members. 2. During the reporting period, the board of directors (or its committee for nominations) assessed the nominees for the board of direc-tors in terms of required experience, knowledge, business reputation, absence of confl icts of interest, etc.
Partially com-pliant
The Regulation on Board of Directors contains the requirements for the chairman and members of the board of directors. These requirements include the absence of economic fraud, or pub-lic order crimes, abuse of public and lo-cal authorities, as well as administrative violations, primarily in entrepreneurial activities, fi nance, taxes and duties, securities market. This proves that members of the board of directors have to be impeccable in terms of business and personal reputation and possess knowledge in corporate law. Review of the activities of the board of directors is scheduled for 2017.
254
Rosenergoatom / Annual report / 2016 25 years of safe operation
Item Corporate Governance Principles
Criteria for Assessment of Compliance with Corporate Governance Principle
Status of Compliance with Corporate Governance Principle
Explanation of Deviation from Criteria for Assessment of Compliance with Corporate Governance Principle
2.3.2 Members of the Board of Directors are elected through a transparent procedure that permits stockholders to obtain information about nominees suffi cient to get an idea about their personal and professional qualities.
1. At all general meetings of stockholders held during the reporting period with election of the board of directors on agenda, the company provided the stockholders with biographies of every nominee for the board of directors, the results of the nominees assessment carried out by the board of directors (or its committee for nominees), as well as the information on the nominees compliance with independence criteria according to recommendations 102-107 of the Code, plus a written consent of the nominees to election on the board of directors.
Partially compliant
In 2016, the company provided the stockholders with biographies of every nominee for the board of directors and information about availability of the nominees’ written consent to election on the board of directors. Compliance assessment of the board of directors nominees was not per-formed.
2.3.3 The composition of the board of directors is balanced, including the qualifi cation of its members, their experience, knowledge and business qualities. Members of the board enjoy credibility among stockholders.
1. As part of the procedure for assessment of the activities of the board of directors accomplished during the reporting period, the board of directors analyzed its needs in professional qualifi cations, experience, and business skills.
Partially com-pliant
Composition of the board of directors is balanced and meets the respective requirements approved by the Regu-lation on Board of Directors. Assess-ment of the board of directors was not performed in 2016. It is scheduled for 2017.
2.3.4 The quantitative composition of the company's board of directors allows organizing its activities in the most effi cient way, including the possibility of establishing committees under the board of directors and electing a nominee, proposed by substantial minority stockholders and voted for as a member of the board of directors.
1. As part of the procedure for assessment of the board of directors held during the report-ing period, the board of directors considered compliance of the quantitative composition of the board of directors with the company's needs and stockholders' interests.
Partially com-pliant
The Board of Directors is comprised of fi ve persons. This enables organizing its activities in the most effi cient way.
2.4 The board of directors is comprised of a suffi cient number of independent directors.
2.4.1 An independent director is a person possessing suffi cient professionalism, experience, and independence to de-fi ne his/her position, make reasonable and fair judgments that are not dependent on the infl uence made by the company's executive bodies, individual stockholder groups, or other stakeholders. At the same time, it should be taken into consideration that usually a nominee (elected member of the board of directors) can not be considered independent if connected with the Company, its substantial stockholder, or substantial counteragent, a competitor of the company, or the government.
1. During the reporting period, all independ-ent members of the board of directors met all criteria of independence specifi ed in recommendations 102-107 of the Code, or were considered independent according the decision of the board of directors.
Non-compliant There are no independent directors on the board of directors.
255
Item Corporate Governance Principles
Criteria for Assessment of Compliance with Corporate Governance Principle
Status of Compli-ance with Corpo-rate Governance Principle
Explanation of Deviation from Criteria for Assessment of Compliance with Corpo-rate Governance Principle
2.4.2 Nominees for the board of directors are assessed for compliance with independence criteria, the compliance of independent members of the board of directors with independence criteria is analyzed on a regular basis. The con-tent shall prevail over the form during such assessment.
1. During the reporting period, the board of directors (or a committee for nominations un-der the board of directors) shaped an opinion on independence of each nominee for the board of directors and submitted a respective report to the stockholders.2. At least once during the reporting period, the board of directors (or the committee for nominations under the board of directors) reviewed the independence of the incumbent members of the board of directors who the company mentions in the annual report as independent directors.3. The company developed procedures defi n-ing the required actions of a member of the board of directors in case he/she ceases to be independent, including the responsibilities for timely provision of information to the members of the board of directors.
Non-compliant The board of directors has no committees.
2.4.3 Independent directors comprise at least one third of the elected board of directors.
1. Independent directors comprise at least one third of the board of directors.
Non-compliant There are no independent directors on the board of directors.
2.4.4 Independent directors play a key role in preventing internal confl icts in the company and making signifi cant cor-porate actions by the company.
1. Independent directors (without confl icts of interest) preliminarily assess signifi cant corporate actions related to possible confl icts of interest, and the results of assessment are submitted to the board of directors.
Non-compliant There are no independent directors on the board of directors.
2.5 The chairman of the board of directors helps perform the functions vested in the board of directors in the most effi cient way.
2.5.1 An independent director is elected as chairman of the board of directors, or a chief independent director is chosen among the elected independent directors to coordinate the work of in-dependent directors and interact with the chairman of the board of directors
1. The chairman of the board of directors is an independent director, otherwise, a chief independent director is chosen from the inde-pendent directors.2. The role, rights, and obligations of the chairman of the board of directors (and the chief independent director, if applicable) are duly defi ned by the company’s internal documents.
Non-compliant There are no independent directors on the board of directors.
2.5.2 The chairman of the board of directors ensures a constructive atmosphere of the meetings, unconstrained discus-sion of the meeting agenda items, and implementation control of the resolutions adopted by the board of directors.
1. Effi ciency of the board of directors chair-man was evaluated as part of the procedure for assessment of the board of directors during the reporting period.
Non-compliant The chairman of the board of directors ensures a construc-tive atmosphere.Assessment of the activities of the board of directors is scheduled for 2017.
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Rosenergoatom / Annual report / 2016 25 years of safe operation
Item Corporate Governance Principles
Criteria for Assessment of Compliance with Corporate Governance Principle
Status of Compli-ance with Corpo-rate Governance Principle
Explanation of Deviation from Criteria for Assessment of Compli-ance with Corporate Governance Principle
2.5.3 The chairman of the board of directors takes measures re-quired for timely provision of the board of directors mem-bers with the information needed to adopt resolutions on the agenda items.
1. The responsibility of the board of directors chairman to take measures for timely provision of the board of directors members with the materials related to agenda items of the board of directors meeting is specifi ed in the company’s internal documents.
Compliant
2.6 The members of the board of directors act in good faith and reason for the benefi t of the company and its stockholders on the basis of suffi cient information, with due regard and consideration.
2.6.1 The members of the board of directors make decisions with due regard of all information, with no confl ict of interest, with consideration of equal attitude to the company’s stockholders as part of usual entrepreneurial risk.
1. The company’s internal documents stipulate that a member of the board of directors shall inform the board of directors in case there is a confl ict of interest related to any agenda item at a meeting of the board of directors, or a committee of the board of directors, before discussion of the respective agenda item.2. The company’s internal documents stipulate that a member of the board of directors shall abstain from voting on any matter that he/she has a confl ict of interest in.3. The company adopted a procedure allowing for the board of directors to receive professional con-sultations on the matters within its competence, at the expense of the company.
Compliant
2.6.2 The rights and obligations of the board of directors mem-bers are explicitly formulated and specifi ed in the compa-ny’s internal documents.
1. The company adopted and published an internal document that clearly defi nes the rights and obliga-tions of the board of directors members.
Compliant
2.6.3 The members of the board of directors have enough time for discharge of their obligations.
1. Individual attendance of the board and committee meetings and the time devoted to getting ready for participation in the meetings were considered during assessment of the board of directors in the reporting period.2. According to the company’s internal documents, the members of the board of directors shall inform the board of directors on their intention to become members of management bodies in other organiza-tions (except for the company’s subsidiaries and af-fi liates), as well as on the facts of such appointment.
Compliant
257
Item Corporate Governance Principles
Criteria for Assessment of Compliance with Corporate Governance Principle
Status of Compli-ance with Corpo-rate Governance Principle
Explanation of Deviation from Criteria for Assessment of Compli-ance with Corporate Governance Principle
2.6.4 All members of the board of directors are equally entitled to access the company’s documents and information. Newly elected members of the board of directors are provided with suffi cient infor-mation about the company and the board of directors activities as soon as reasona-bly possible.
1. According to the company’s internal documents, the members of the board of directors are entitled to access documents and make inquiries related to the company and its subsidiaries, and the compa-ny’s executive bodies shall provide the respective information and documents.2. There is a formalized familiarization program in the company for newly elected members of the board of directors.
Compliant
2.7 Preparation for the meetings of the board of directors and participation in them by the board of directors members ensure effi cient activity of the board of directors.
2.7.1 Meetings of the board of directors are held as often as required, with due regard for the scale of activity and the objectives faced by the compa-ny at the moment.
1. The board of directors held at least six meetings during the reporting period.
Compliant
2.7.2 The company's internal docu-ments specify the procedure of preparation for the board of directors meetings and of their arrangement ensuring that the board of directors members are capable of getting ready for them in a proper way.
1. The company adopted the internal document defi ning the procedure for preparation and ar-rangement of the board of directors meetings. The document stipulates, inter alia, that a notice of the board of directors meetings shall be made no later than fi ve days before the date of the meeting.
Compliant
2.7.3 The format of the board of di-rectors meetings is defi ned on the basis of the agenda items importance. Most important items are discussed at the meetings in person.
1. The company’s articles of association or internal document stipulate that the most important matters (according to the list specifi ed in recom-mendation 168 of the Code) are considered at in-person meetings of the board.
Partially compliant
The procedure of preparation and arrangement of the board of directors meetings ensures effi cient consideration of the most impor-tant issues at meetings held either in person or in absentia.
258
Rosenergoatom / Annual report / 2016 25 years of safe operation
APPENDIX 12. OPERATING NPP POWER UNITS (AS OF DECEMBER 31, 2016)
NPP Name PU No. Reactor Type Capacity (P), MW Hook-Up Date
Balakovo NPP 1 VVER-1000 1000 28.12.1985
2 VVER-1000 1000 08.10.1987
3 VVER-1000 1000 24.12.1988
4 VVER-1000 1000 11.04.1993
Beloyarsk NPP 3 BN-600 600 08.04.1980
4 BN-800 885 10.12.2015
Bilibino NPP 1 EGP-6 12 12.01.1974
2 EGP-6 12 30.12.1974
3 EGP-6 12 22.12.1975
4 EGP-6 12 27.12.1976
Kalinin NPP 1 VVER-1000 1000 09.05.1984
2 VVER-1000 1000 03.12.1986
3 VVER-1000 1000 16.12.2004
4 VVER-1000 1000 22.11.2011
Kola NPP 1 VVER-440 440 29.06.1973
2 VVER-440 440 09.12.1974
3 VVER-440 440 24.03.1981
4 VVER-440 440 11.10.1984
Kursk NPP 1 RBMK-1000 1000 12.12.1976
2 RBMK-1000 1000 28.01.1979
3 RBMK-1000 1000 17.10.1983
4 RBMK-1000 1000 02.12.1985
Leningrad NPP 1 RBMK-1000 1000 21.12.1973
2 RBMK-1000 1000 11.07.1975
3 RBMK-1000 1000 07.12.1979
4 RBMK-1000 1000 09.02.1981
Novovoronezh NPP 4 VVER-440 417 28.12.1972
5 VVER-1000 1000 31.05.1980
Novovoronezh NPP-2 1 VVER-1200 1200 05.08.2016
Rostov NPP 1 VVER-1000 1000 30.03.2001
2 VVER-1000 1000 16.03.2010
3 VVER-1000 1070 27.12.2014
Smolensk NPP 1 RBMK-1000 1000 09.12.1982
2 RBMK-1000 1000 31.05.1985
3 RBMK-1000 1000 17.01.1990
259 APPENDIX 13. INSTALLED CAPACITY, POWER OUTPUT AND CAPACITY FACTOR OF NUCLEAR POWER PLANTS OF ROSENERGOATOM CONCERN JSC IN 2016 BY REGIONS
Item No.
Power Plant Name UES Constitu-ent Entity of Russian Federation
Number of Operating Power Units
Power Unit Type
Installed Capacity, MW
Russian FAS Power Genera-tion Target, Mln
KWh
Actual Power Output, Mln
KWh
CF, % AF, % FAS Balance
Fulfi ll-ment, %
1 Kalinin NPP Central Tver Oblast
4 VVER 4,000 28,200.0 27,154.0 77.28 77.73 96.3
2 Kursk NPP Central Kursk Oblast
4 RBMK 4,000 25,934.0 27,488.7 78.24 79.65 106.0
3 Novovoronezh NPP Central Voronezh Oblast
3 VVER 1,834 16,371.0 15,048.1 87.56 88.50 91.9
Including Novovoro-nezh NPP-2 power unit No. 1
Pilot oper-ation
VVER-1200
Power start-up on August 5, 2016
3,300.0 968.6
4 Smolensk NPP Central Smolensk Oblast
3 RBMK 3,000 21,853.0 22,312.9 84.67 85.14 102.1
5 Kola NPP Northwest Murmansk Oblast
4 VVER 1,760 10,505.0 9,837.7 63.63 82.79 93.6
6 Leningrad NPP Northwest Leningrad Oblast
4 RBMK 4,000 27,902.0 28,292.9 80.52 82.35 101.4
7 Rostov NPP South Rostov Oblast
3 VVER 3,000 24,000.0 24,000.7 91.08 91.91 100.0
8 Balakovo NPP Volga Saratov Oblast
4 VVER 4,000 32,480.0 33,610.8 95,66 96.23 103.5
9 Beloyarsk NPP Urals Sverdlovsk Oblast
2 BN-600 1,485 7,770.0 8,399.8 86.37 86.37 108.1
Including power unit No. 4
Sverdlovsk Oblast
BN-800 885 3,500 3,790.81 108.3
10 Bilibino NPP East Chukotka Auton-omous Okrug
4 EGP-6 48 202.9 221.0 52.42 81.58 108.9
TOTAL for Rosener-goatom Concern JSC
35 27,127 195,217.9 196,366.5 83.13 85.32 100.6
260
Rosenergoatom / Annual report / 2016 25 years of safe operation
APPENDIX 14. MAIN PERSONNEL CHARACTERISTICS
Indicators Hea
dqua
rter
s
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akov
o N
PP
Bel
oyar
sk N
PP
Bili
bino
NP
P
Kal
inin
NP
P
Kol
a N
PP
Kur
sk N
PP
Leni
ngra
d N
PP
Nov
ovor
onez
h N
PP
Ros
tov
NP
P
Sm
olen
sk N
PP
Vor
onez
h N
PP
(hea
t on
ly)
Dire
ctor
ate
of K
ostr
oma
NP
P
(und
er c
onst
ruct
ion)
Dire
ctor
ate
for C
onst
ruct
ion
and
Ope
rati
on
of F
loat
ing
Nuc
lear
Pow
er P
lant
s
Dire
ctor
ate
of B
alti
c N
PP
(u
nder
con
stru
ctio
n)
Total Headcount1 by Gender
2014 Total, pers.
840 3,707 3,192 731 4,074 2,605 4,830 4,998 3,710 2,529 4,227 67 38 85 119
Men 454 2,779 2,288 500 2,791 2,094 3,645 3,816 2,798 1,757 2,945 42 16 58 60
Women 386 928 904 231 1,283 511 1,185 1,182 912 772 1,282 25 22 27 59
2015 Total, pers.
815 3,632 3,065 728 3,939 2,510 4,619 5,998 4,053 2,702 4,065 54 38 99 118
Men 436 2,755 2,269 494 2,751 2,039 3,545 4,545 3,067 1,906 2,886 35 17 71 59
Women 379 877 796 234 1,188 471 1,074 1,453 986 796 1,179 19 21 28 59
2016 Total, pers.
779 3,445 2,684 715 3,604 2,269 4,315 5,849 3,912 2,825 3,877 38 33 102 97
Men 406 2,617 2,016 485 2,556 1,809 3,329 4,438 2,967 2,008 2,769 20 15 77 49
Women 373 828 668 230 1,048 460 986 1,411 945 817 1,108 18 19 24 48
Total Number of Hired Employees, and Their Percentage of Headcount
2014 Total, pers.
78 149 333 104 259 98 204 316 1,072 380 123 9 2 23 11
% 9.29 4.02 10.43 14.23 6.36 3.76 4.22 6.32 28.89 15.03 2.91 13.43 5.26 27.06 924
2015 Total, pers.
87 112 124 38 163 24 105 1,422 418 336 55 1 1 25 10
% 10.67 3.08 4.05 5.22 4.14 0.96 2.27 23.71 10.31 12.44 1.35 1.85 2.63 25.25 8.47
2016 Total, pers.
46.00 54 36 42 69 8 167 134 208 336 8 0 0 23 2
% 5.91 1.57 1.34 5.87 1.91 0.35 3.87 2.29 5.32 11.90 0.21 0.00 0.00 22.63 2.06
1. All employees of the Concern are employed on a full-time basis. The share of part-time employees is below 0.1% of the total headcount.
261
Indicators Hea
dqua
rter
s
Bal
akov
o N
PP
Bel
oyar
sk N
PP
Bili
bino
NP
P
Kal
inin
NP
P
Kol
a N
PP
Kur
sk N
PP
Leni
ngra
d N
PP
Nov
ovor
onez
h N
PP
Ros
tov
NP
P
Sm
olen
sk N
PP
Vor
onez
h N
PP
(hea
t on
ly)
Dire
ctor
ate
of K
ostr
oma
NP
P
(und
er c
onst
ruct
ion)
Dire
ctor
ate
for C
onst
ruct
ion
and
Ope
rati
on
of F
loat
ing
Nuc
lear
Pow
er P
lant
s
Dire
ctor
ate
of B
alti
c N
PP
(u
nder
con
stru
ctio
n)
Number of Fired
2014 Men 101 99 126 37 158 72 166 201 93 78 124 14 1 15 24
Women 68 46 124 18 209 25 106 66 89 69 171 3 3 6 9
2015 Men 47 81 164 28 80 84 127 149 149 98 73 14 0 2 5
Women 44 102 160 17 112 44 95 42 81 86 50 7 2 2 11
2016 Men 56 265 356 30 384 276 346 410 278 107 165 12 4 16 15
Women 64 86 97 22 262 70 161 112 185 51 85 2 3 14 14
Employee Turnover by Gender
2014 Men 22.25 3.56 5.51 7.40 5.66 3.44 4.55 5.27 3.32 4.44 4.21 33.33 6.25 25.86 40.00
Women 17.62 4.96 13.72 7.79 16.29 4.89 8.95 5.58 9.76 8.94 13.34 12.00 13.64 22.22 15.25
2015 Men 10.78 2.94 7.23 5.67 2.91 4.12 3.58 3.28 4.86 5.14 2.53 40.00 0.00 2.82 8.47
Women 11.61 11.63 20.10 7.26 9.43 9.34 8.85 2.89 8.22 10.80 4.24 36.84 9.52 7.14 18.64
2016 Men 13.79 10.13 17.66 6.19 15.02 15.26 10.39 9.24 9.37 5.33 5.96 60 27.59 20.70 30.61
Women 17.16 10.39 14.52 9.57 25.00 15.22 16.33 7.94 19.58 6.25 7.67 10.96 16.16 57.45 29.17
262
Rosenergoatom / Annual report / 2016 25 years of safe operation
APPENDIX 15. GLOSSARY
ВОО (Build-Own-Operate) – design circuit, where the design company that constructs the facility also subsequently owns and operates this facility. This form of project fi nancing allows to accumulate of necessary fi nancial resources, to decrease investment risk, and to combine the interests of various parties being members of the project.
INES – International Nuclear Event Scale, adopted to facilitate communication and understanding between nuclear industry experts, mass media, and the public, as regards the magnitude of events (incidents) at nuclear units in terms of safety. The Scale places all events into one of its seven levels: higher-level events (4-7) are known as ‘emer-gency’; lower-level events (1-3) are ‘incidents’. Events that are negligible in terms of safety are placed at Level 0 beyond the Scale, and are known as ‘deviations’. Events irrelevant to safety are placed beyond the Scale, and are known to be ‘off-scale’.
Core zone – part of the reactor that houses nuclear fuel, the moderator, beta absorber, heat medium, reactive impact devices, and structural elements used to enable a con-trolled nuclear fi ssion chain reaction and transmit the energy to the heat medium.
Automated radiation control system (ARCS) – an automated system including information and instrumentation systems and equipment that enables its functioning. This system collects and processes information about controlled parameters that characterize the radiological status in NPP controlled are-as, at industrial sites, in the buffer area and radiation-control area, in all NPP operating modes, including design basis accidents and beyond design basis accidents, as well as the NPP condition during decommissioning of its power units.
Automated radiation background control (ARBC) – an automated system that meas-ures strength of exposure to gamma rays
within residential communities.
Nuclear power plant (NPP) – nuclear equipment used to generate energy in preset operational modes and conditions, installed within project-defi ned bound-aries that uses for that purpose one or more nuclear reactors and a set of related systems, devices, equipment, and buildings with personnel.
Nuclear power industry – section of the power industry that engages nuclear energy to produce heat and electricity.
Nuclear Energy Agency (NEA) – dedicated agency under the Organization for Econom-ic Cooperation and Development (OECD), an intergovernmental organization of devel-oped nations, having its headquarters in Paris, France. To date 30 countries are part of OECD. NEA’s objective is to promote research and technological development and harmonization of national regulatory documents of member countries for safe, cost-effective, and ecologically clean use of nuclear power for peaceful purposes.
NPP safety – a nuclear plant’s ability, during normal and abnormal operation, including emergencies, to keep the radiation impact on its personnel, citizens, and the environ-ment within specifi c required limits.
Fast reactor (fast breeder reactor) – nuclear reactor in which the fi ssion chain reaction is sustained by fast neutrons (with an energy of >105 eV).
WANO – World Association of Nucle-ar Plant Operators, whose mission is to maximize the safety and reliability of nu-clear plant operations worldwide through exchanging information and encouraging contacts among its members, comparing their working results and promoting best practices.
263 Commissioning – a process when the sys-tems and equipment of the power unit or the entire NPP are launched, and their project compliance is checked. The process includes pre-commissioning setup, physical and power start-up, pilot operation, and fi nal-ly commissioning of the NPP.
Water-cooled water-moderated power reac-tor (VVER) – a shell-protected power reactor using water under pressure as heat medium, moderator, and neutron refl ector.
VVER-TOI – a typical, optimized and IT-based project for a two-unit NPP with VVER reac-tor, implemented in a modern IT medium in compliance with the requirements for nuclear and radiation safety.
Radioactive emission – a substance (or mix) as a gas and/or aerosol, released into the environment (air) from emitting sources.
Radiation dose – in radiation safety, a measure of impact by ionizing radiation on a biological object, typically a human. Distinc-tion is made among exposure, absorbed, and equivalent doses.
NPP life cycle – all stages of evolution that a nuclear plant passes through during its existence; this includes design, construction, commissioning, operation, and decommis-sioning.
Closed nuclear fuel cycle – a nuclear fuel cy-cle (NFC) where spent nuclear fuel unloaded from the reactor is recycled to recover ura-nium and plutonium to be reused in nuclear fuel.
Beyond design basis accident – an accident caused by the initiating events that are not considered as such for the design basis accidents, or when a single failure of a design basis accident is accompanied by additional safety system failures, or wrong decisions made by personnel.
Nuclear reactor protection shell – a device in a nuclear reactor designed to hold radioac-tive nuclides within the volume of the shell, in the event of emergency decompression of the reactor equipment.
Safety protections – systems (components) designed to prevent or mitigate damage
to nuclear fuel, fuel element jackets, equip-ment, and pipelines that contain radioactive substances.
Intellectual capital – organizational intangible assets, including the development of poten-tial of already hired personnel and prospec-tive employees (university graduates).
Availability factor (AF) – refers to the capa-bility of rated electrical load bearing of the power unit, expressed as the ratio of the sum of power generated by the unit and power that was not generated by reasons unrelated to the power unit to the power generated during this period of time under rated (installed) capacity. The standard value for a NPP is AF = 80%.
Capacity factor – ratio of a power unit (pow-er plant) output for a specifi c time interval to the power unit output at the nominal (installed) capacity for this time interval.
Emergency drill set – a set of exercise activi-ties the Concern holds to train its NPP man-agement, forces, and facilities to respond to an emergency.
Concern’s Crisis Center – a key component within the structure of emergency support to NPPs, it monitors main parameters of production, radiation, environment, and fi re safety in the 24/7 mode.
Nuclear reactor shell – a tight reservoir de-signed to hold the core zone of the nuclear reactor, neutron refl ector, monitoring and experimental hardware and to organize the cooling of the reactor using a heat medium fl ow.
Safety culture – culture where all individu-als are trained, skilled, and psychologically prepared, ensuring that NPP safety becomes a priority and inherent need that results in understanding of own responsibility and self-control during safety-related activities.
Spent nuclear fuel – nuclear fuel contaminat-ed in the reactor’s core zone and withdrawn from it completely.
Floating nuclear power plant (FNPP) – a mo-bile nuclear power plant with small output capacity to be used in remote regions of Russia, and abroad, for the desalination of
264
Rosenergoatom / Annual report / 2016 25 years of safe operation
seawater, inter alia. The plant is a non-pro-pelled craft with a nuclear power unit, transported to the region of operation via waterways.
Radiation safety – condition when the existing and future human generations are protected against health-damaging impacts of ionizing radiation.
Radiation control – collecting information about the radiation situation at NPPs, in the environment, and people exposure.
RBMK (high-power channel reactor) – chan-nel-type, water-cooled graphite-moderated power reactor with the power capacity of 1 GW and above, where water boils in duct channels, and saturated steam is supplied from separators into the turbines.
Reactor unit – a set of NPP systems and components designed to convert nuclear power to heat, including a reactor and direct-ly related systems that support its normal
operation, emergency cooling, emergen-cy protections, and safety assurance, and provide compliance with mandatory auxiliary and support functions from other systems of the power plant. The limits for the reactor unit are stated specifi cally for each NPP in its project pack.
Situation Crisis Center – a center that en-sures technical, technological, information exchange and analytic support to activities of the HQ of Rosatom State Corporation, as well as involvement in information support to ongoing management of the industry both under routine conditions and in emergencies.
Fuel element – the key structural component in a nuclear reactor’s core zone in which nuclear fuel is encapsulated.
Energy effi ciency – effi cient (rational) use of energy resources to achieve economically justifi ed effi ciency at the existing level of en-gineering and technology, given compliance with environmental protection regulations.
265 APPENDIX 16. ABBREVIATIONS
ASIDC – automated system of individual dosimeter control
АRCS – automated radiation monitoring system
APCS – automated process control system
NPP – nuclear power plant
BN – sodium-cooled fast breeder reactor
WANO – World Association of Nuclear Oper-ators
VVER – water-cooled water-moderated pow-er reactor
RCR – resource characteristics recovery (RBMK reactors)
DECOM – decommissioning
RCPS – reactor coolant pump set
MCP – main circulation pipeline
PD – permissible discharge
LRAW – liquid radioactive waste
PS – pollutant substances
IRG – inert radioactive gas
SC – Safety Culture
AF – availability factor
CIR – consolidated investment resource
CF – capacity factor
LPC – low pressure condensers
EF – effi ciency factor
KPI – key performance indicators
CRMS – Corporate Risk Management System
PPSL – psycho-physiological support labora-tory of nuclear power plants
IAEA – International Atomic Energy Agency
IPOCVE – Interregional Public Organization of Concern’s Veteran Employees
MC – Moscow Center (WANO)
RD – regulatory documents
R&D – research and development
HPF – hazardous production facility
PO – pilot operation
WECM – wholesale electricity and capacity market
SFA – spent fuel assembly
ID – irradiation devices
UES – unifi ed energy system (Russia)
SNF – spent nuclear fuel
FNPP – fl oating nuclear power plant
LPH – low pressure heaters
CSU - commissioning and start-up
IS – improvement suggestions (RPS element)
RPS - Rosatom Production System
SLE – service life extension
FPU – fl oating power unit
RAW – radioactive waste
RBMK – high-power channel reactor
266
Rosenergoatom / Annual report / 2016 25 years of safe operation
IP – intellectual property
ACPS TP – automatic control and protection system (of the turbine plant)
SCC – Situation Crisis Center (Rosatom)
SALC – special assessment of labor conditions
AFCF – adjusted free cash fl ow
SSA – steel shield assemblies
EPCS – emergency prevention and control system
QMS - quality management system
FE – fuel element
HME – heat machinery equipment
M&R – maintenance and repair
TFP – turbine feed pump
TC – training center
FSR – federal standards and rules
HQ – Headquarters (of the Concern)
DPC – Data Processing (and Storage) Center
TSC – technical service center
NF - nuclear fuel
267
4
3
2
1
APPENDIX 17. FEEDBACK FORM
Dear Readers,
We have been pleased to offer for your consideration the 2016 Annual Report of Rosenergoatom Concern JSC. It is important for us to ensure that the dialogue with all of our stakeholders is as transparent and as honest as possible.
Your comments and suggestions will help us to improve the quality of future reports and make them more informative and relevant.
Please send the completed form to: Rosenergoatom Concern JSC, ul. Fergan-skaya, d. 25, Moscow 109507, or by email to: [email protected].
Contact person for Report content – Alexander Berenzon, Senior Specialist, Department of Information and Public Relations, tel. +7 (495) 647-46-36, email: [email protected].
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