|Electricity transmission and distribution||725.5||650.4|
|Electricity and capacity sales||74.7||55.9|
|Other revenue and government subsidies||35.7||26.3|
The ROSSETI Group’s consolidated revenue totaled 904 billion rubles, or 17.9% up on 2015, largely due to a growth in revenue from electricity transmission and distribution because of increased net electricity delivery, compensation for lost income resulting from the termination of last mile agreements, and the restored smoothing mechanism of minimum regulated revenue in tariff decisions in accordance with the Forecast of the Socioeconomic Development of the Russian Federation.
The ROSSETI Group’s principal goal of procurement is to purchase products in a timely and complete manner with the greatest possible cost effectiveness.
ROSSETI carries out the strategic management of the Company’s and SDCs’ procurement practices, including establishing general rules, exercising control and coordination, and assessing procurement efficiency.
New construction and expansion of electric grid facilities
Rehabilitation and technical upgrading of electric grid facilities
Power equipment repair, general repair, and maintenance operations
Sole source purchases
Public competitive bidding
Public requests for proposals
Public requests for quotations
ROSSETI gives much attention to the development of its relations with suppliers and contractors. The Company conducts supplier selection procedures strictly in accordance with the requirements of procurement documents. The bid evaluation criteria require approval from the Procurement Commission, depending on the purchase method, the purchase type, and the subject matter of the awarded contract. The Company’s interaction with suppliers includes a sequence of procedures from budget planning to contract performance.