11.12.2019

The rating agency "Expert RA" affirmed rating of the management quality of the PJSC https://raexpert.ru/ratings/corporate/MOESK https://raexpert.ru/ratings/corporate/ at А++.gq.

PJSC MOESK provides services for the transfer of electric energy and technological connection of consumers to electric power system in the territory of Moscow and the Moscow Region. The largest owner of PJSC MOESK is Rosseti PJSC (share in the authorized capital- 50.9%).

The Agency positively assesses the high level of quality of the risk management system and the activities of executive bodies. The company has a Management Board, the activitiy of which is regulated. Members of the Management Board have over 5 years of industry experience. There are no external signs of concentration of decision-making on a key figure.

The Board of Directors - the main strategic management body of the company - includes 13 directors, most of the participants have extensive industry experience. Two representative directors of non-controlling shareholders are recognized as independent. The activitiy of the Board of Directors is regulated, and its composition is generally stable. Evaluation of the effectiveness of the Board of Directors is constrained by the small number of in-person meetings. The Board of Directors has 5 committees, the activities of which are also regulated: the audit committee, the the HR and remuneration committee, the reliability committee, the strategy committee, and the committee on technological connection to power grids.

Information transparency of the company is evaluated as positively as possible. All financial and non-financial information is disclosed by the company on a regular basis. The terms of information disclosure are regulated by the information policy and are respected without violation. Separate control is carried out for the completeness and accuracy of information disclosure.

According to the agency, the company has created a system to effectively protect the rights of owners and minimize conflicts of interest, which is embodied in strict adherence to the dividend policy. Support for the protection of the rights of shareholders is provided by the Audit Commission reporting directly to the general meeting of shareholders. The Audit Commission includes 5 people. Minutes of meetings of the Audit Commission are publicly available, which also emphasizes the very high information transparency of the company. At the level of the Board of Directors, control functions are performed by the internal audit department.

In 2018, through an open tender procedure, the company changed its auditor from RSM-Rus LLC to Ernst & Young LLC, which is part of Ernst & Young, one of the largest audit firms in the world.

When assigning the management quality rating to PJSC MOESK, the methodology for assigning management quality ratings was used https://raexpert.ru/ratings/methods/current (entered into force on 11/07/2019).

The key sources of information used in the framework of the rating analysis were the data of PJSC MOESK, the Bank of Russia, as well as the data of JSC Expert RA. The information used by JSC Expert RA as part of the rating analysis was sufficient to apply the methodology.