JSC Bashkir Power Grid Company (BPGC) is one of Russia's biggest power grid companies, which ensures electricity transit between the central part of the country and the Urals. It manages distribution and transmission grid assets in the Republic of Bashkortostan and carries out design, construction and comprehensive renovation of power facilities using the Smart Grid technology. BPGC’s subsidiaries include LLC Bashkir Grid Company (“BGC”) (transmission grids), LLC Bashkirenergo (distribution grids) and LLC BPGC Engineering (engineering).
BPGC is a modern, innovative, efficient and dynamic company, which dominates the power grid market and controls power grids of all voltage levels in the Republic of Bashkortostan.
BPGC’s activities are aimed at ensuring reliable, high-quality and affordable power supply to consumers. In addition to its core operating activities, the company pays close attention to its role in driving local economic growth, sustainable development and cooperation. Most of the company’s revenue is generated by its transmission business, which is a natural monopoly and therefore has its prices closely regulated by the government. Other businesses of the group include utility hookup services, engineering and construction of power lines and electrical substations, as well as lease, IT and communication services.
BPGC’s key goals are maintaining leadership in operational efficiency among Russian power grid assets and generating stable cash flows for shareholders and maintaining dividends at the current level, while maximising shareholder value both organically and through M&A.
In 2018, LLC Bashkirenergo installed more than 50,000 meters designed specifically for state-of-the-art automated power control and metering systems. As a result, the company now operates some 220,000 meters and 286,000 metering channels across the region.
In 2018 BPGC’s revenue grew by 8.3% to RUB 19.1 billion. Revenue growth in 2018 was also driven by tariff indexation and an increase in electricity consumption and capacity as consumers switched to twopart tariffs.
With a view to enhancing operating efficiency, BPGC continued its long-term programmes including energy conservation and improvement of energy efficiency, overhaul of distribution grids and implementation of Smart Grid solutions, automation of business processes through the use of information technology and ERP systems, migration to a two-tier system of operational and technological management at LLC Bashkirenergo as an optimisation move.