“OGK-2” JSC, Russia “OGK-2” JSC, Russia
“OGK-2” JSC is the largest thermal power generating company of the Russian Federation with installed capacity of 18.4 GW. The key activities of “OGK-2” JSC are the electricity and heat production and sale. The main sales market is the wholesale market of electric power (capacity).
Public JSC Territorial Generating Company # 2 (TGC-2) was established by the RAO UES of Russia resolution on February 25, 2005. The Company passed the State registration procedures on April 19, 2005. The shaping principle of TGC-2 is merger with the Regional Generating Companies, which were established as a result of AO-energo reform.
TGC-2 is a leading heat and power company in the Northern and Northwest parts of Russia. The Company activities cover heat and power production as well as sale of heat (steam and hot water) to consumers. TGC-2 comprises generating capacities of 6 regions - Arkhangelsk, Vologda, Kostroma, Novgorod, Tver and Yaroslavl. TGC-2 operates 15 heat CHPPs, 13 boiler-houses, 5 enterprises of heat pipelines. The aggregate installed electric capacity of TGC-2 enterprises is 2 542,5 MW, the aggregate installed thermal capacity constitutes 12 285,82 Gcal/h.
TGC-2 is functioning on heat power markets of 12 cities, 7 of which hold 95% of market realization: Vologda, Yaroslavl, Tver, Arkhangelsk, Severodvinsk, Novgorod, and Kostroma. In its relations with heat power consumers, TGC-2 is oriented to attainment and maintenance of balance between economic interests and observance of rules of reliable and non-stop current and perspective power supplying. Company merchandising will be based on forming the offering price no higher than heat power production expenses on own and alternative sources of customers, developing a long-term contractual relations with industrial customers that perceive flexible pricing policy, active interaction with City Administrations in order to build-up optimum channels of heat distribution for city consumers.
On the wholesale market of electric energy and power industry TGC-2 is an active participant of all its sectors: regulated market of electric energy and power, day-ahead electric energy market, balancing market of electric energy. According to 2006 data, sales portion on competitive markets (day-ahead electric energy market and balancing market of electric energy) was 7.2%. In medium-term perspective there will be continuous liberalization of the wholesome market of electric energy and increasing the portion of competitive markets, which is characterized by free price formation and choosing counterparts for power and heat delivery, and that of course will positively reflect on profitableness of company business.